annual report 2017 - aida-global.com
TRANSCRIPT
Annual Report 2017Year ended March 31, 2017
Annual Report 2017
Printed in Japan
2-10 Ohyama-cho, Midori Ward, Sagamihara City, Kanagawa Prefecture 252-5181, Japan
TEL +81-42-772-5231 FAX +81-42-772-5263
Disclaimer Regarding Forward-Looking StatementsThis annual report contains statements that address plans and future performance and are not statements of historical fact. These forward-looking statements are based on management’s assumptions in light of information currently available. Risks, uncertainties and other factors may cause actual results and achievements to differ from those anticipated in these statements.
Period CoveredThe period covered by this annual report is the fiscal year that began on April 1, 2016 and ended on March 31, 2017. “Fiscal year 2017” is the fiscal year ended on March 31, 2017.
Cautionary Statements with Respect to Graphs and Financial FiguresThe amounts presented in yen are rounded down to the nearest hundred millions or millions.
Contents
AIDA’s Strengths
Overview of AIDA
To Our Stakeholders
The New Mid-Term Management Plan
Feature: AIDA Supporting the Evolution of Automobiles
Corporate Governance
357
1213
17
Corporate Officers
CSR Initiatives
At a Glance
Consolidated Financial Summary
Management’s Discussion and Analysis of Business Results and Financial Position
1921232527
Consolidated Segment Information
Financial Statements
Stock Information
Corporate Data/History
Operating Bases
3031606162
Offering Comprehensive Press Forming Solutions,AIDA Supports Technical Innovation in ManufacturingAIDA ENGINEERING is a comprehensive manufacturer of press forming systems that, since its founding nearly a century ago, in 1917, has been helping its customers maintain exceptional efficiency and quality in their manufacturing operations, and contributing to their efforts to save resources and energy. With a core of outstanding technological capabilities and product development expertise that have enabled the development of products such as the world’s first servo press, we will use our strengths in proposing total solutions encompassing entire production lines, and in providing ongoing after-sales support, to establish a top brand trusted by customers all over the world.
1917Yokei Aida, founder of the company that would come to be known as AIDA ENGINEERING, LTD.
1960First 100-ton transfer press to be made in Japan
1967
1970
2008
1972–
1968
2017
The “Autohand,” the first industrial robot to be made in Japan
1956
1959
First press manufactured in Japan, a 200-ton high-speed automatic press
A 2,500-ton transfer press, one of the world’s largest-capacity presses when it was introduced
Yokei Aida founded AIDA Ironworks in Honjo, Tokyo, and the company became a trailblazer in the manufac-ture of presses in Japan.
Introduced the first 200-ton high-speed automatic press to be made in Japan, an event that marked the beginning of AIDA’s rapid development as a modern press manufacturer.
New factory constructed in Sagamihara City in Kanagawa Prefecture. Active expansion and capital investments would result in the present headquar-ters and headquarters plant.
Introduced the first 100-ton transfer press to be made in Japan, opening the door to the era of transfer presses in Japan’s forming-machinery industry.
Completed the development of a 2,500-ton transfer press. Among the world’s largest-capacity presses at the time, this product established AIDA as a global leader in press technology.
Completed development of the first industrial robot to be made in Japan. The “Autohand” drew attention for its revolutionary technology.
Company name is changed to AIDA ENGINEERING, LTD. Listing of the Company’s shares is upgraded to the Tokyo Stock Exchange First Section.
Established a subsidiary in the United States, marking a formal start of overseas business for the Company. At present, the Company has established a five-pole production system, and operates sales and service locations in 19 countries throughout the world.
Announced a 2,300-ton large servo press for making automobile body panels.
2002 Introduced the world’s first direct-drive servo press. This press was equipped with a servo motor developed by AIDA.
AIDA celebrates the 100th anniversary of its founding.
World’s fastest servo press line (at the time of introduction) for automobile body panels
Direct servo former with servo motor direct drive system
1 Annual Report 2017AIDA ENGINEERING, LTD. 2
Disclaimer Regarding Forward-Looking StatementsThis annual report contains statements that address plans and future performance and are not statements of historical fact. These forward-looking statements are based on management’s assumptions in light of information currently available. Risks, uncertainties and other factors may cause actual results and achievements to differ from those anticipated in these statements.
Period CoveredThe period covered by this annual report is the fiscal year that began on April 1, 2016 and ended on March 31, 2017. “Fiscal year 2017” is the fiscal year ended on March 31, 2017.
Cautionary Statements with Respect to Graphs and Financial FiguresThe amounts presented in yen are rounded down to the nearest hundred millions or millions.
Contents
AIDA’s Strengths
Overview of AIDA
To Our Stakeholders
The New Mid-Term Management Plan
Feature: AIDA Supporting the Evolution of Automobiles
Corporate Governance
357
1213
17
Corporate Officers
CSR Initiatives
At a Glance
Consolidated Financial Summary
Management’s Discussion and Analysis of Business Results and Financial Position
1921232527
Consolidated Segment Information
Financial Statements
Stock Information
Corporate Data/History
Operating Bases
3031606162
Offering Comprehensive Press Forming Solutions,AIDA Supports Technical Innovation in ManufacturingAIDA ENGINEERING is a comprehensive manufacturer of press forming systems that, since its founding nearly a century ago, in 1917, has been helping its customers maintain exceptional efficiency and quality in their manufacturing operations, and contributing to their efforts to save resources and energy. With a core of outstanding technological capabilities and product development expertise that have enabled the development of products such as the world’s first servo press, we will use our strengths in proposing total solutions encompassing entire production lines, and in providing ongoing after-sales support, to establish a top brand trusted by customers all over the world.
1917Yokei Aida, founder of the company that would come to be known as AIDA ENGINEERING, LTD.
1960First 100-ton transfer press to be made in Japan
1967
1970
2008
1972–
1968
2017
The “Autohand,” the first industrial robot to be made in Japan
1956
1959
First press manufactured in Japan, a 200-ton high-speed automatic press
A 2,500-ton transfer press, one of the world’s largest-capacity presses when it was introduced
Yokei Aida founded AIDA Ironworks in Honjo, Tokyo, and the company became a trailblazer in the manufac-ture of presses in Japan.
Introduced the first 200-ton high-speed automatic press to be made in Japan, an event that marked the beginning of AIDA’s rapid development as a modern press manufacturer.
New factory constructed in Sagamihara City in Kanagawa Prefecture. Active expansion and capital investments would result in the present headquar-ters and headquarters plant.
Introduced the first 100-ton transfer press to be made in Japan, opening the door to the era of transfer presses in Japan’s forming-machinery industry.
Completed the development of a 2,500-ton transfer press. Among the world’s largest-capacity presses at the time, this product established AIDA as a global leader in press technology.
Completed development of the first industrial robot to be made in Japan. The “Autohand” drew attention for its revolutionary technology.
Company name is changed to AIDA ENGINEERING, LTD. Listing of the Company’s shares is upgraded to the Tokyo Stock Exchange First Section.
Established a subsidiary in the United States, marking a formal start of overseas business for the Company. At present, the Company has established a five-pole production system, and operates sales and service locations in 19 countries throughout the world.
Announced a 2,300-ton large servo press for making automobile body panels.
2002 Introduced the world’s first direct-drive servo press. This press was equipped with a servo motor developed by AIDA.
AIDA celebrates the 100th anniversary of its founding.
World’s fastest servo press line (at the time of introduction) for automobile body panels
Direct servo former with servo motor direct drive system
1 Annual Report 2017AIDA ENGINEERING, LTD. 2
We earn the long-term trust of our customers by perform-ing regular and preventive maintenance services, supply-ing spare parts, and taking other steps that keep press-es and other equipment we have installed in top working order. In recent years, we have helped customers increase the value of their existing equipment and reduce costs through retrofitting (modernization), which can include overhaul work, measures to increase precision or performance, the addition of new functions, and upgrading to the latest system component.
Beginning with a knuckle-joint press in 1933, AIDA has led the way as the developer of numerous “made-in-Japan” presses. With recent achievements such as our creation in 2002 of the world’s first direct-drive servo press—a revolution for press forming systems—and the introduction of one of the world’s largest-capacity servo presses (at the time) in 2008, we have continued to be a pioneer in the evolution of press forming systems. Leveraging the technology and product development expertise we have developed over the years, and a product line second to none, we help customers optimize their manufacturing operations.
Solving frontline production problems, such as how to increase productivity, quality, and energy efficiency, requires the ability to manage production lines in their entirety. AIDA, through forming systems incorporating presses served by auxiliary equipment such as material feeders and automated transfer equipment, and process develop-ment expertise, provides customers with optimal solutions.
AIDA’s Strengths
Partnering with Customers Over the Long Term,We Make Optimal Production Lines a Reality
Strength No. 3Customer Serviceand SupportCapabilitiesAs an Engineering Group that Production Operations Can Count on over the Long Term
Strength No. 1Technology and Product DevelopmentAs a Pioneer and Specialist in Press Forming Systems
Strength No. 2Comprehensive SolutionsAs a Forming Systems Builder Optimizing Production Lines
3 Annual Report 2017AIDA ENGINEERING, LTD. 4
We earn the long-term trust of our customers by perform-ing regular and preventive maintenance services, supply-ing spare parts, and taking other steps that keep press-es and other equipment we have installed in top working order. In recent years, we have helped customers increase the value of their existing equipment and reduce costs through retrofitting (modernization), which can include overhaul work, measures to increase precision or performance, the addition of new functions, and upgrading to the latest system component.
Beginning with a knuckle-joint press in 1933, AIDA has led the way as the developer of numerous “made-in-Japan” presses. With recent achievements such as our creation in 2002 of the world’s first direct-drive servo press—a revolution for press forming systems—and the introduction of one of the world’s largest-capacity servo presses (at the time) in 2008, we have continued to be a pioneer in the evolution of press forming systems. Leveraging the technology and product development expertise we have developed over the years, and a product line second to none, we help customers optimize their manufacturing operations.
Solving frontline production problems, such as how to increase productivity, quality, and energy efficiency, requires the ability to manage production lines in their entirety. AIDA, through forming systems incorporating presses served by auxiliary equipment such as material feeders and automated transfer equipment, and process develop-ment expertise, provides customers with optimal solutions.
AIDA’s Strengths
Partnering with Customers Over the Long Term,We Make Optimal Production Lines a Reality
Strength No. 3Customer Serviceand SupportCapabilitiesAs an Engineering Group that Production Operations Can Count on over the Long Term
Strength No. 1Technology and Product DevelopmentAs a Pioneer and Specialist in Press Forming Systems
Strength No. 2Comprehensive SolutionsAs a Forming Systems Builder Optimizing Production Lines
3 Annual Report 2017AIDA ENGINEERING, LTD. 4
Overview of AIDA
*The sales figure given above does not include “Other Sales” of ¥100 million, 0.2% of total sales.
ITALYSite area 54,855m²Building area 24,170m²
AIDA S.r.l.
Production facilities
Global sales and service network
Technology center
CHINASite area 67,960m²Building area 30,004m²
AIDA PRESS MACHINERY SYSTEMS CO., LTD.
Sales of Press Machines and Factory Automation (FA)(Fiscal year ended March 31, 2017)
Sales of Services(Fiscal year ended March 31, 2017)
As a Specialist in Presses, AIDA Leads the Forming Machinery Industry
AIDA’s Businesses
Europe
78.0%¥52.7Billion
21.7%¥14.6 Billion
Japan
Asia
China
Press Machines
Principal Products
● General-purpose servo presses● Mid-size and large servo presses● Precision forming presses● General-purpose presses● Mid-size and large presses● High-speed automatic presses● Cold forging presses
Service
Principal Services
● Retrofits/Modernization● Overhaul● Preventive maintenance● Press inspections● Machine relocation
Factory Automation (FA)
Principal Products
● Piling systems● Material feeders
• Coil feeders• Destack feeders
● Conveyance machines• Conveyance robots• Sub-transfer feeders• Die changing devices
JAPANSite area 170,872m²Building area 82,324m²
U.S.A.Site area 171,858m²Building area 16,750m²
AIDA AMERICA CORP.
AIDA ENGINEERING, LTD.
MALAYSIASite area 72,843m²Building area 28,345m²
AIDA ENGINEERING (M) SDN. BHD. AIDA MANUFACTURING (ASIA) SDN. BHD.
Making the Most of AIDA’s Global Five-Pole Networkto Enhance Our Brand Power
Global Network
GreaterQuality
HigherOperationalEfficiency
MoreEffective
PreventiveMainte-nance
AiCARE
Japan
NorthAmerica
Servo presses are capable of highly precise motion control and can increase productivity and formability when synchro-nized with transfer feeders and other peripheral equipment. Proposals for optimizing entire forming systems built around servo presses will maximize benefits for customers.
IoT, too, is playing a role in the form of our proprietary “AiCARE” system for collecting data from presses and other machines and using it to provide each customer with customized information. Because it can be used with installed machines made by other companies and can use remote control to centrally manage machines, AiCARE will result in improvements not only in quality and capacity utilization but also in areas such as preventive maintenance.
Value-Added Creation through Forming Systems and IoT
Our customers pursue production activities on a global basis. It is necessary, therefore, for us to be able to supply products across national and regional boundaries. Having established a five-pole production system with manufacturing facilities in Japan, China, Malaysia, the U.S., and Italy, we are able to link our production activities across multiple manufacturing facilities for globally optimized production. By locating production close to demand, we have succeeded in cutting procurement and shipping costs, and reducing production lead times. Furthermore, because we use machining centers of the same specifica-tions throughout our global operations, we are able to apply the same software and jigs in all of these locations, and ensure stable quality regardless of plant location. To remain a trusted partner for customers, we will continue to augment our produc-tion infrastructure in anticipation of future business expansion.
Optimal Global Production System
Automotive-related industries, our prima-ry market, continue to add production capacity and expand the vertical startup approach in which new automobile models are produced and sold in volume simultaneously in multiple countries. To serve the global manufacturing needs of these customers, we have established our own sales and service locations in 35 cities located in 19 countries, and, starting with the installation of presses, respond with meticulous attention to customer needs, going beyond standard after-sales support.
Furthermore, our International Sales Teams collaborate across national and regional borders to ensure information integrity for sales operations that focus intently on serving the needs of the customer’s headquarters and local manufacturing plants.
Meticulous Sales and Service Organization
Centralized management and application of operation data
on machines across the globe
5 Annual Report 2017AIDA ENGINEERING, LTD. 6
Overview of AIDA
*The sales figure given above does not include “Other Sales” of ¥100 million, 0.2% of total sales.
ITALYSite area 54,855m²Building area 24,170m²
AIDA S.r.l.
Production facilities
Global sales and service network
Technology center
CHINASite area 67,960m²Building area 30,004m²
AIDA PRESS MACHINERY SYSTEMS CO., LTD.
Sales of Press Machines and Factory Automation (FA)(Fiscal year ended March 31, 2017)
Sales of Services(Fiscal year ended March 31, 2017)
As a Specialist in Presses, AIDA Leads the Forming Machinery Industry
AIDA’s Businesses
Europe
78.0%¥52.7Billion
21.7%¥14.6 Billion
Japan
Asia
China
Press Machines
Principal Products
● General-purpose servo presses● Mid-size and large servo presses● Precision forming presses● General-purpose presses● Mid-size and large presses● High-speed automatic presses● Cold forging presses
Service
Principal Services
● Retrofits/Modernization● Overhaul● Preventive maintenance● Press inspections● Machine relocation
Factory Automation (FA)
Principal Products
● Piling systems● Material feeders
• Coil feeders• Destack feeders
● Conveyance machines• Conveyance robots• Sub-transfer feeders• Die changing devices
JAPANSite area 170,872m²Building area 82,324m²
U.S.A.Site area 171,858m²Building area 16,750m²
AIDA AMERICA CORP.
AIDA ENGINEERING, LTD.
MALAYSIASite area 72,843m²Building area 28,345m²
AIDA ENGINEERING (M) SDN. BHD. AIDA MANUFACTURING (ASIA) SDN. BHD.
Making the Most of AIDA’s Global Five-Pole Networkto Enhance Our Brand Power
Global Network
GreaterQuality
HigherOperationalEfficiency
MoreEffective
PreventiveMainte-nance
AiCARE
Japan
NorthAmerica
Servo presses are capable of highly precise motion control and can increase productivity and formability when synchro-nized with transfer feeders and other peripheral equipment. Proposals for optimizing entire forming systems built around servo presses will maximize benefits for customers.
IoT, too, is playing a role in the form of our proprietary “AiCARE” system for collecting data from presses and other machines and using it to provide each customer with customized information. Because it can be used with installed machines made by other companies and can use remote control to centrally manage machines, AiCARE will result in improvements not only in quality and capacity utilization but also in areas such as preventive maintenance.
Value-Added Creation through Forming Systems and IoT
Our customers pursue production activities on a global basis. It is necessary, therefore, for us to be able to supply products across national and regional boundaries. Having established a five-pole production system with manufacturing facilities in Japan, China, Malaysia, the U.S., and Italy, we are able to link our production activities across multiple manufacturing facilities for globally optimized production. By locating production close to demand, we have succeeded in cutting procurement and shipping costs, and reducing production lead times. Furthermore, because we use machining centers of the same specifica-tions throughout our global operations, we are able to apply the same software and jigs in all of these locations, and ensure stable quality regardless of plant location. To remain a trusted partner for customers, we will continue to augment our produc-tion infrastructure in anticipation of future business expansion.
Optimal Global Production System
Automotive-related industries, our prima-ry market, continue to add production capacity and expand the vertical startup approach in which new automobile models are produced and sold in volume simultaneously in multiple countries. To serve the global manufacturing needs of these customers, we have established our own sales and service locations in 35 cities located in 19 countries, and, starting with the installation of presses, respond with meticulous attention to customer needs, going beyond standard after-sales support.
Furthermore, our International Sales Teams collaborate across national and regional borders to ensure information integrity for sales operations that focus intently on serving the needs of the customer’s headquarters and local manufacturing plants.
Meticulous Sales and Service Organization
Centralized management and application of operation data
on machines across the globe
5 Annual Report 2017AIDA ENGINEERING, LTD. 6
QA
How would you assess your business results for the fiscal year ended March 31, 2017?
Though various factors such as a strengthening yen and a temporary drop in orders led to lower sales and profits, since the second half of the last fiscal year we have been seeing a steady recovery.
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
For the forming-machinery industry as a whole, the fiscal year just ended saw an increase in orders received both in Japan and overseas, with growth of 5.8% year on year, to ¥154.5 billion*. For the AIDA Group, however, order intake fell 17.0%, to ¥62.6 billion, mainly because we did not get a large tandem line order we had expected at the beginning of the fiscal year. Nevertheless, with a steady flow of orders for small- and mid-size presses, transfer presses, and other products, the value of orders received began trending upward in the second half.
Net sales declined 10.6% year on year, to ¥67.5 billion, as a stronger yen reduced sales on a yen-conversion basis and as automotive-related orders for presses fell in Japan and other parts of Asia. The loss of the large tandem line order mentioned above along with other factors led to disappointing first-half sales that are reflected in the final results for the fiscal year, but with order intake starting to trend upward in the second half, we are seeing a steady recovery in net sales. As for earnings, lower sales and a strong yen led to operating income of ¥6.6 billion, down 17.7%, ordinary income of ¥6.7 billion, down 19.0%, and profit attributable to owners of parent of ¥4.9 billion, down 13.8%.
Looking at the results of our business divisions, though press sales fell 13.9% year on year, customer service sales rose 4.3%, due to strong demand for retrofit (modernization) solutions for existing machines.
On a regional basis, net sales and operating income declined significantly in Japan and Asia. Howev-er, our sales performance in the Americas remained solid on a local currency basis and operating income surpassed the results of the previous fiscal year. In Europe, sales on a local currency basis has continued to be solid, supported in part by revenue booked for large projects based on the percentage of comple-tion. With the added benefits from factors such as more robust cost management and reductions in fixed expenses, the operating loss was greatly reduced compared to the prior fiscal year.
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.*Based on data from the Japan Forming Machinery Association
QA
What are the basic policies set forth in the new Mid-Term Management Plan?
A focus on growth fields and high-profit fields in order to change our profit structure, and securing stable earnings over the medium to long term.
QA
What are your thoughts regarding environmental awareness—which is the underlying premise of the new Mid-Term Management Plan—and AIDA’s strengths and challenges?
We will further enhance the strengths we have developed and vigorously make the most of our business opportunities.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
p.12
pp.25–27
To Our Stakeholders
Kimikazu Aida
Under the Newly Launched Mid-Term Management Plan, We will Continue to Take on New Challenges in AIDA’s Second Century
President & CEO
7 Annual Report 2017AIDA ENGINEERING, LTD. 8
QA
How would you assess your business results for the fiscal year ended March 31, 2017?
Though various factors such as a strengthening yen and a temporary drop in orders led to lower sales and profits, since the second half of the last fiscal year we have been seeing a steady recovery.
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
For the forming-machinery industry as a whole, the fiscal year just ended saw an increase in orders received both in Japan and overseas, with growth of 5.8% year on year, to ¥154.5 billion*. For the AIDA Group, however, order intake fell 17.0%, to ¥62.6 billion, mainly because we did not get a large tandem line order we had expected at the beginning of the fiscal year. Nevertheless, with a steady flow of orders for small- and mid-size presses, transfer presses, and other products, the value of orders received began trending upward in the second half.
Net sales declined 10.6% year on year, to ¥67.5 billion, as a stronger yen reduced sales on a yen-conversion basis and as automotive-related orders for presses fell in Japan and other parts of Asia. The loss of the large tandem line order mentioned above along with other factors led to disappointing first-half sales that are reflected in the final results for the fiscal year, but with order intake starting to trend upward in the second half, we are seeing a steady recovery in net sales. As for earnings, lower sales and a strong yen led to operating income of ¥6.6 billion, down 17.7%, ordinary income of ¥6.7 billion, down 19.0%, and profit attributable to owners of parent of ¥4.9 billion, down 13.8%.
Looking at the results of our business divisions, though press sales fell 13.9% year on year, customer service sales rose 4.3%, due to strong demand for retrofit (modernization) solutions for existing machines.
On a regional basis, net sales and operating income declined significantly in Japan and Asia. Howev-er, our sales performance in the Americas remained solid on a local currency basis and operating income surpassed the results of the previous fiscal year. In Europe, sales on a local currency basis has continued to be solid, supported in part by revenue booked for large projects based on the percentage of comple-tion. With the added benefits from factors such as more robust cost management and reductions in fixed expenses, the operating loss was greatly reduced compared to the prior fiscal year.
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.*Based on data from the Japan Forming Machinery Association
QA
What are the basic policies set forth in the new Mid-Term Management Plan?
A focus on growth fields and high-profit fields in order to change our profit structure, and securing stable earnings over the medium to long term.
QA
What are your thoughts regarding environmental awareness—which is the underlying premise of the new Mid-Term Management Plan—and AIDA’s strengths and challenges?
We will further enhance the strengths we have developed and vigorously make the most of our business opportunities.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
p.12
pp.25–27
To Our Stakeholders
Kimikazu Aida
Under the Newly Launched Mid-Term Management Plan, We will Continue to Take on New Challenges in AIDA’s Second Century
President & CEO
7 Annual Report 2017AIDA ENGINEERING, LTD. 8
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.
QA
What are some of the specific steps that will be taken to achieve the targets included in the new Mid-Term Management Plan?
Six core strategies will be aggressively pursued in order to achieve ongoing growth.
AIDA EUROPE GmbH was established in Weingarten, a major German manufacturing center, as our European Technology Center.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
A destack feeder—an automated high-speed feeder that continuously supplies blanks one by one to a press
The China (Nantong) production facility that has been expanded to be a production hub for large presses for customers in Europe, the US, and Asia
To Our Stakeholders
9 Annual Report 2017AIDA ENGINEERING, LTD. 10
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.
QA
What are some of the specific steps that will be taken to achieve the targets included in the new Mid-Term Management Plan?
Six core strategies will be aggressively pursued in order to achieve ongoing growth.
AIDA EUROPE GmbH was established in Weingarten, a major German manufacturing center, as our European Technology Center.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
A destack feeder—an automated high-speed feeder that continuously supplies blanks one by one to a press
The China (Nantong) production facility that has been expanded to be a production hub for large presses for customers in Europe, the US, and Asia
To Our Stakeholders
9 Annual Report 2017AIDA ENGINEERING, LTD. 10
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
QA
What is your outlook for the fiscal year ending March 31, 2018 and your policy regarding shareholder returns?
We will work to achieve higher sales and earnings through steady order intake.And we will continue to pay stable dividends to our shareholders.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
67.5
52.8
14.6
72.0
15.6
11.5
44.9
76.0
13.5
17.5
45.0
15.0
20.0
45.0
New Challenges for the AIDA's Next Century
VisionAs a leading global company, we will contribute to protect the environment, reduce energy consumption and develop technologies.
Performance Targets
3/2020
＝
“The AIDA PLAN 523”
“The AIDA PLAN 523”
3/2012–3/2014
2012
100
80
60
40
20
0
(Billions of yen)
2013 2014 2015 2016 2017 2018 2019 2020(Target) (Target) (Target)
3/2015–3/2017 3/2018–3/2020
Net Sales
¥80.0 billion
Operating Income
¥8.0 billion
Basic Strategies
Develop Markets & Customers● Develop Global Customers (Appeal of the AIDA Brand)● Technical Marketing
Improve Product Competitiveness● Promote Servo Presses● Press Standardization● New Materials
Strengthen Strategic Business Segments
● Factory Automation● Service
Sophistication of Our Global Business Structure
● Global Co-Manufacturing● Global Governance
Human Resource Development● Global Human Resource
Development● Strategic Personnel Rotation
Strengthen Our Foundation for Growth
● Bolster R&D● Investment
80.0
6.61
8.037.86
6.32
3.76
2.22
8.007.40
7.0052.2
41.7
10.4
57.8
45.1
12.6
69.5
57.1
12.4
76.8
63.0
13.8
75.5
61.4
14.0
12
10
8
6
4
2
0
(Billions of yen)Press MachinesNet Sales: ServiceFactory Automation (FA) Operating Income:
Long-term sales target
Ratio by business segment:■ Press Machines = 5■ Factory Automation (FA) = 2■ Service = 3
Net Sales
¥100 billion
Achieve Sustainable Growth as a Global Company
New Challenges for the AIDA's Next Century
Enhance Foundation for Further Growth While Looking Ahead to AIDA’s 100th Anniversary
With a basic policy of “Stable Growth,” aim for new highs in net sales.
Aim for stable operating profits of 10% or higher.
The New Mid-Term Management PlanYears Ending March 2018–2020
To Our Stakeholders
August 2017
Kimikazu AidaPresident & CEO
11 Annual Report 2017AIDA ENGINEERING, LTD. 12
In line with the slogan from our previous Mid-Term Management Plan – “Enhance Foundation for Further Growth Looking Ahead to AIDA’s 100th Anniversary” – the AIDA Group increased its invest-ments in capital equipment, human resources development, and R&D. Under our new Mid-Term Management Plan (covering the fiscal years ending March 31, 2018 to March 31, 2020) and its theme of “New Challenges for the AIDA’s Next Century,” we are working to further strengthen our existing growth infrastructure and to move ahead with investment strategies for growth fields while bearing in mind the issues that came to light during the previous Mid-Term Management Plan.
In terms of specific targets, we have set a medium- to long-term sales target of ¥100.0 billion, with targets of ¥80.0 billion in net sales (a record high) and ¥8.0 billion in operating income to be achieved by the end of the three years covered by our new Mid-Term Management Plan.
Achieving these targets will require us to focus on growth fields and high-profit fields, and to change our profit structure. Therefore, we have decided to clearly position factory automation (FA) (which had previously been included in the press machine division) as a separate core business division, and we will strive to increase the percentage of total net sales coming from it and from our high-profit customer service business. Our new slogan, “AIDA Plan 523,” denotes our target of eventually having our press, FA, and customer service businesses contributing to our overall sales in a 5:2:3 ratio.
■ Environmental AwarenessThe automobile industry is the AIDA Group’s principal market, and we expect moderate growth in the automobile market over the medium to long term, with this being led by emerging economies as growth in advanced economies continues to soften. At the same time, we believe there will be a global growth trend towards the adoption of electric vehicles and lighter-weight vehicles. In addition, we are seeing rapidly growing demand for production equipment automation and robotization, and we see this as a significant business opportunity for AIDA.
On the other hand, the earnings environment is extremely challenging. Customers are negotiat-ing hard for lower prices, there is competition from not only Japanese but also European, American, and emerging economy press manufacturers, and the price of steel plate and other raw materials is rising rapidly.
■ AIDA’s Strengths and ChallengesThroughout its long history, the AIDA Group has focused on developing its strengths in areas such as technology, production, sales, and customer service that other companies cannot match.
For example, in terms of technological strengths, first and foremost AIDA leveraged its know-how to independently develop servo presses, and in addition we have comprehensive engineering capabili-ties that also include press peripheral equipment. We also have a wide array of products. However, we also recognize that we have issues to address when it comes to accommodating major users in Europe and technical capabilities related to controls and automation for these users.
On the manufacturing front, we have built an optimized global manufacturing network consisting of five manufacturing locations in Japan, China, Malaysia, the US, and Italy. This allows us to manufacture
products close to our customers. In addition, we are able to leverage our global co-manufacturing system, in which the major units of a single press are manufactured at separate locations and assem-bled at the customer's location. This is another strength not found in our competitors.
Another major advantage AIDA enjoys is the sales and customer service offices we have in 19 countries.
During our previous Mid-Term Management Plan, we devoted significant resources to enhancing these strengths. However, solidly responding to the global, dynamic business endeavors of our customers is an issue that remains to be addressed. As we move forward to implement our new Mid-Term Management Plan, we are committed to firmly seizing business opportunities by overcom-ing issues we have discovered in the past and by further developing our strengths.
AIDA will implement the following six core strategies included in the new Mid-Term Management Plan.
Develop Markets & Customers
The international sales team will be strengthened and technical marketing capabilities will be further enhanced to expand our business with mega suppliers and other global customers.
Our development efforts will focus on markets in Europe and in emerging economies. Meeting European specifications is particularly important because our European customers are actively engaged in emerging economies. Our European Technology Center began operations in August 2016 and it will be leveraged to further enhance our capabilities to serve European customers.
Improve Product Competitiveness
In order to further improve the competitiveness of our flagship servo press products, we will make a concerted effort to increase the power and efficiency of our servo motors while at the same time also making them more compact. In addition, with the increasing demand for equipment that can form new materials such as ultra high tensile strength steel, aluminum, and carbon fiber in order to achieve lighter-weight automobiles, AIDA will invest significant resources in the development of forming systems for these new materials that will take advantage of our servo technology.
Establish a Strong Foundation for Future Growth
AIDA will vigorously move forward with strategic investments to implement the strategies described above. In addition to servo system development, factory automation product development, develop-ment of forming systems for new materials, and other R&D areas, funds will also be allocated to growth investments in capital equipment, to streamlining initiatives that will internalize more production and improve productivity, and to investments in new forward-looking business operations. Our projected target for R&D investments is 2% of net sales, and for capital investments is 5% of net sales.
The AIDA Group continues to face a challenging business environment due to factors such as intense global competition and high raw material costs. Nevertheless, we aim to achieve higher sales and earnings by steadily implementing the measures outlined in our new Mid-Term Management Plan.
We expect the solid sales performance that began in the second half to continue throughout the coming fiscal year and based on this we are anticipating net sales of ¥72.0 billion, up 6.6% year on year. Regarding earnings, we anticipate that factors such as rising raw material costs and the taking of strategic orders will lead to lower gross margins, but higher sales and productivity will enable us to achieve operating income of ¥7.0 billion, up 5.8%, and net income of ¥5.0 billion, up 0.3%.
As for returns to shareholders, as specified in our new Mid-Term Management Plan, “Our basic policy is to continue to provide stable dividends to stockholders by aiming to maintain a consolidated dividend payout ratio of 30% or higher while at the same time assuring a stable management founda-tion and maintaining our reserves for investments for future growth.” In other words, our aim is to balance the goals of maintaining sufficient reserves to overcome economic fluctuations, of setting funds aside for growth investments that include capital equipment and new operations, and of paying stable dividends to shareholders. Based on this policy, we are planning to pay dividends of ¥30 per share (a consolidated dividend payout ratio of 37.0%) for the fiscal year ending March 31, 2018.
In March 2017 we celebrated the 100th anniversary of our founding, and we are committed to rising to the “New Challenges for the AIDA's Next Century.” We look forward to the ongoing support and understanding of our stakeholders as we enter our second century of operation.
QA
What is your outlook for the fiscal year ending March 31, 2018 and your policy regarding shareholder returns?
We will work to achieve higher sales and earnings through steady order intake.And we will continue to pay stable dividends to our shareholders.
Strengthen Strategic Business Segments
As previously mentioned, under the new Mid-Term Management Plan, factory automation (FA) and customer service are positioned as strategic business segments and management resources will be allocated to them on a prioritized basis in order to change the earnings structure and achieve profit growth over the medium to long term.
With regard to factory automation, we will strengthen our ability to develop press-related automa-tion in order to respond to increasing customer demand for production equipment automation that boosts productivity.
As for our customer service operations, an ever-increasing number of presses in the field makes our post-installation customer service activities even more important. Accordingly, our efforts will
focus on responding to customer require-ments by strengthening our retrofit (modern-ization) business (such as converting existing mechanical presses to servo presses and updating peripheral systems) and our preven-tive maintenance business.
Further Sophistication of Our Global Business Structure
During the previous Mid-Term Management Plan, we expanded our production facilities in Italy, the US, and China, thereby increasing our overall global production floorspace by 20%. Under the new Mid-Term Management Plan, this production infrastructure will be used to further develop our global co-manufacturing system.
These efforts will begin with increased in-house manufacturing in order to retain more of the value-added content that had previously been outsourced. This will be accomplished by increasing the utilization of new equipment that has been installed up through the last fiscal year. Next, in order to further enhance optimized production on a global basis, we will strengthen our management of production capacities at each production facility in order to further reduce lead times and costs. In addition, this global collaborative approach will be expanded beyond our manufacturing departments to also include our engineering departments.
To strengthen global governance, we will proceed with the implementation of a global ERP system, and we will put in place global standardized workflows for our order intake, engineering, production, and cost management processes.
Human Resource Development
AIDA will undertake human resource development at the global level by actively transferring headquar-ters personnel in Japan to overseas facilities and bringing overseas personnel to the headquarters for long-term OJT and other training. At the same time, as part of our efforts to strengthen strategic business segments, we will be engaged in medium- to long-term human resource development.
67.5
52.8
14.6
72.0
15.6
11.5
44.9
76.0
13.5
17.5
45.0
15.0
20.0
45.0
New Challenges for the AIDA's Next Century
VisionAs a leading global company, we will contribute to protect the environment, reduce energy consumption and develop technologies.
Performance Targets
3/2020
＝
“The AIDA PLAN 523”
“The AIDA PLAN 523”
3/2012–3/2014
2012
100
80
60
40
20
0
(Billions of yen)
2013 2014 2015 2016 2017 2018 2019 2020(Target) (Target) (Target)
3/2015–3/2017 3/2018–3/2020
Net Sales
¥80.0 billion
Operating Income
¥8.0 billion
Basic Strategies
Develop Markets & Customers● Develop Global Customers (Appeal of the AIDA Brand)● Technical Marketing
Improve Product Competitiveness● Promote Servo Presses● Press Standardization● New Materials
Strengthen Strategic Business Segments
● Factory Automation● Service
Sophistication of Our Global Business Structure
● Global Co-Manufacturing● Global Governance
Human Resource Development● Global Human Resource
Development● Strategic Personnel Rotation
Strengthen Our Foundation for Growth
● Bolster R&D● Investment
80.0
6.61
8.037.86
6.32
3.76
2.22
8.007.40
7.0052.2
41.7
10.4
57.8
45.1
12.6
69.5
57.1
12.4
76.8
63.0
13.8
75.5
61.4
14.0
12
10
8
6
4
2
0
(Billions of yen)Press MachinesNet Sales: ServiceFactory Automation (FA) Operating Income:
Long-term sales target
Ratio by business segment:■ Press Machines = 5■ Factory Automation (FA) = 2■ Service = 3
Net Sales
¥100 billion
Achieve Sustainable Growth as a Global Company
New Challenges for the AIDA's Next Century
Enhance Foundation for Further Growth While Looking Ahead to AIDA’s 100th Anniversary
With a basic policy of “Stable Growth,” aim for new highs in net sales.
Aim for stable operating profits of 10% or higher.
The New Mid-Term Management PlanYears Ending March 2018–2020
To Our Stakeholders
August 2017
Kimikazu AidaPresident & CEO
11 Annual Report 2017AIDA ENGINEERING, LTD. 12
Feature
AIDA’s presses are used to manufacture body, frame, and other parts and components making up an automobile. With society placing greater and greater demands on automobiles to be friendlier to the environment, safer, more sophisticated in design, and so on, AIDA is responding to the diverse needs of automo-tive-related industries and contributing to the evolution of automobiles by breaking new ground in technical sophistication for its presses and other manufacturing technologies.
AIDA Supporting the Evolution of Automobiles
Precision Forming Presses
Automotive Components
High-Speed Automatic Presses General-Purpose Presses
Motor Cases
Transfer Presses
Transmission Components
Servo Tandem Lines
Outer Panels
Progressive Die Presses
Seat Components
Cold Forging Presses
Suspension Components
Transfer Presses
Automotive Frame Components
AutomotiveComponents
AutomotiveFrame
AutomotiveBody
HV/EV Motor Cores Steering Components
Servo Tandem Lines
Outer Panels
Transfer Presses
Automotive Frame Components
AutomotiveFrame
AutomotiveBody
13 Annual Report 2017AIDA ENGINEERING, LTD. 14
Feature
AIDA’s presses are used to manufacture body, frame, and other parts and components making up an automobile. With society placing greater and greater demands on automobiles to be friendlier to the environment, safer, more sophisticated in design, and so on, AIDA is responding to the diverse needs of automo-tive-related industries and contributing to the evolution of automobiles by breaking new ground in technical sophistication for its presses and other manufacturing technologies.
AIDA Supporting the Evolution of Automobiles
Precision Forming Presses
Automotive Components
High-Speed Automatic Presses General-Purpose Presses
Motor Cases
Transfer Presses
Transmission Components
Servo Tandem Lines
Outer Panels
Progressive Die Presses
Seat Components
Cold Forging Presses
Suspension Components
Transfer Presses
Automotive Frame Components
AutomotiveComponents
AutomotiveFrame
AutomotiveBody
HV/EV Motor Cores Steering Components
Servo Tandem Lines
Outer Panels
Transfer Presses
Automotive Frame Components
AutomotiveFrame
AutomotiveBody
13 Annual Report 2017AIDA ENGINEERING, LTD. 14
High-CapacityCapacitors
PowerSource
MainBreaker
Original ServoController
CrankEncoder
RedundantPosition
Detection
MotorEncoder
Regenerative EnergyDuring Deceleration
DC
ACAC
Step-UpTransformer Servo
PowerSupply
ServoAmp
PressServo
Motors
Automotive Bodies
Automotive Frames
Automotive Components
Feature AIDA Supporting the Evolution of Automobiles
Efforts to increase fuel economy are driving automotive manufacturers to reduce the weight of automobile bodies, and AIDA is offering comprehensive forming systems for aluminum.
Highly Energy Efficient AIDA Servo Press Drive System
High-precision processing made possible by the UL Series precision forming press
Motor core produced with an MSP Series high-speed, precision press
Enlarged view: blanking and stacking of laminationsa
Servo transfer press for forming high tensile strength steel
Aluminum blanks being transferred by the destack feeder
AIDA is contributing to greater safety by developing new technologies for increased high tensile strength steel applications.
As emission control becomes stricter throughout the world, the use of aluminum materials is growing as a way to reduce the weight of automobile bodies. Automobiles, however, must offer design aesthetics that are pleasing to customers, and aluminum poses complex difficulties when it comes to forming. Servo presses, though, make it possible to overcome these difficulties. First developed by AIDA, servo presses offer the ability to finely control press motion and forming speed, and can be used to efficiently process aluminum body materials with complex designs. Servo presses also help to reduce the environmental footprint of automobile manufacturing processes through the outstanding energy efficiency that results from the use of high-capacity capaci-tors and regenerative electric power*. By offering servo presses together with peripheral equipment as forming systems, featuring benefits such as minimized loss-time achieved through synchro-nized control of servo presses and transfer feeders, we are helping customers achieve greater production efficiency.
Development of an Aluminum Blank Destack Feeder attached to Presses
PMX Series Progressive Die Presses Adding Greater Value to Automobile Parts
Topic
Aluminum, in contrast with steel, is not magnetic, so traditional blank feeders, which employ magnetism to separate blanks, cannot be used to handle them. That is why AIDA developed a blank feeder that uses air pressure to separate aluminum blanks. In the US and Europe, the use of aluminum for not only body panels but also frame components is taking hold rapidly, and our technology developed specifically to handle aluminum is support-ing the manufacturing activity of our customers.
AIDA pioneered the development of high-precision, high-productivity progressive die presses and has been marketing the Progmax Press (PMX Series) for over 30 years. More recently, there has been a trend toward greater added value, through the use of large dies and high tensile strength steel materials, particularly in the manufacture of automobile seat-related parts, and we have seen rising demand for large PMX presses, which are well-suited for forming these parts. During the fiscal year ended March 31, 2017, we received an order for a PMX 2 Point Press (1,600-ton capacity, 4,500×1,800mm die area) and a straightener feeder from one of Japan’s largest precision press die manufacturers. The PMX 2 Point Press is among the largest-ca-pacity presses in the world, and we delivered it together with the straightener feeder, which is capable of handling high tensile strength steel. Going forward, we will contin-ue to provide comprehensive support for production lines responding to the demands of the times.
The kind of material used for automobile frames greatly affects impact safety. High tensile strength steel is increasingly being used as material for automobile frames because of its advan-tages in saving weight and increasing safety. However, because of its hardness, high tensile strength steel is also difficult and time-consuming to process, is prone to tearing and returning to its shape before forming, and is costly in terms of wear and tear on presses and dies. Forming high tensile strength steel, therefore, has been done by heating the steel, to soften it for forming, and quenching with water after pressing. This approach, known as hot stamping, requires large heating and cooling facilities, and causes the surface of the processed steel to oxidize, so there is a need for improvement upon its low production efficiency. The servo press, developed by AIDA, uses a unique low-speed, high-torque motor and optimal motion control to eliminate tearing
and the tendency of high tensile strength steel to return to its original shape. Eliminating the need for heating and cooling, the servo press also offers greater forming efficiency and space saving. Manufacturers of high tensile strength steel are striving to make this material even stronger, and we will work with them to develop a new forming technology to handle the improved steels.
High-precision, high-value-added AIDA presses underpin world-class manufacturing.Presses are used to form not only body and frame components but also a wide range of engine, drivetrain, steering, transmis-sion, underbody, and other parts. For all of these parts, advances in materials, and safety requirements, have meant needs for even greater precision and strength.
AIDA’s UL Series of precision forming presses enable the forming of high-precision, high-value-added parts, previously regarded as impractical with traditional forming approaches. UL Series presses are often used to form engine and transmis-sion components critical to the basic functioning of automo-biles, and to make items such as parts for seats and seatbelts, which must meet high safety standards.
Large, super-precise dies are needed to produce motor
cores for the high-performance motors used in electric and hybrid vehicles, and AIDA’s MSP Series of high-speed, precision presses, with wide bed areas for handling various types of laminates, is among the world’s leaders in this field.
In recent years, AIDA has also been promoting its compact high-speed servo tandem line, a series of small servo presses and robots that together can equal the production capacity of a large transfer press. Compact high-speed servo tandem lines have been particularly outstanding in producing automatic transmission, brake, seat, and other types of small parts. AIDA is contributing to the evolution of manufacturing by providing production systems responding to the desires of automo-tive-related industries.
*The electrical power generated by a motor acting as a generator when its rotation is reversed for deceleration
PMX-L2-16000 press capable of working with large dies and processing higher tensile strength steel parts for automobiles
Large servo tandem line with a destack feeder unique to AIDA, installed at a joint venture manufacturing plant of a major British-Chinese automobile manufacturer
15 Annual Report 2017AIDA ENGINEERING, LTD. 16
High-CapacityCapacitors
PowerSource
MainBreaker
Original ServoController
CrankEncoder
RedundantPosition
Detection
MotorEncoder
Regenerative EnergyDuring Deceleration
DC
ACAC
Step-UpTransformer Servo
PowerSupply
ServoAmp
PressServo
Motors
Automotive Bodies
Automotive Frames
Automotive Components
Feature AIDA Supporting the Evolution of Automobiles
Efforts to increase fuel economy are driving automotive manufacturers to reduce the weight of automobile bodies, and AIDA is offering comprehensive forming systems for aluminum.
Highly Energy Efficient AIDA Servo Press Drive System
High-precision processing made possible by the UL Series precision forming press
Motor core produced with an MSP Series high-speed, precision press
Enlarged view: blanking and stacking of laminationsa
Servo transfer press for forming high tensile strength steel
Aluminum blanks being transferred by the destack feeder
AIDA is contributing to greater safety by developing new technologies for increased high tensile strength steel applications.
As emission control becomes stricter throughout the world, the use of aluminum materials is growing as a way to reduce the weight of automobile bodies. Automobiles, however, must offer design aesthetics that are pleasing to customers, and aluminum poses complex difficulties when it comes to forming. Servo presses, though, make it possible to overcome these difficulties. First developed by AIDA, servo presses offer the ability to finely control press motion and forming speed, and can be used to efficiently process aluminum body materials with complex designs. Servo presses also help to reduce the environmental footprint of automobile manufacturing processes through the outstanding energy efficiency that results from the use of high-capacity capaci-tors and regenerative electric power*. By offering servo presses together with peripheral equipment as forming systems, featuring benefits such as minimized loss-time achieved through synchro-nized control of servo presses and transfer feeders, we are helping customers achieve greater production efficiency.
Development of an Aluminum Blank Destack Feeder attached to Presses
PMX Series Progressive Die Presses Adding Greater Value to Automobile Parts
Topic
Aluminum, in contrast with steel, is not magnetic, so traditional blank feeders, which employ magnetism to separate blanks, cannot be used to handle them. That is why AIDA developed a blank feeder that uses air pressure to separate aluminum blanks. In the US and Europe, the use of aluminum for not only body panels but also frame components is taking hold rapidly, and our technology developed specifically to handle aluminum is support-ing the manufacturing activity of our customers.
AIDA pioneered the development of high-precision, high-productivity progressive die presses and has been marketing the Progmax Press (PMX Series) for over 30 years. More recently, there has been a trend toward greater added value, through the use of large dies and high tensile strength steel materials, particularly in the manufacture of automobile seat-related parts, and we have seen rising demand for large PMX presses, which are well-suited for forming these parts. During the fiscal year ended March 31, 2017, we received an order for a PMX 2 Point Press (1,600-ton capacity, 4,500×1,800mm die area) and a straightener feeder from one of Japan’s largest precision press die manufacturers. The PMX 2 Point Press is among the largest-ca-pacity presses in the world, and we delivered it together with the straightener feeder, which is capable of handling high tensile strength steel. Going forward, we will contin-ue to provide comprehensive support for production lines responding to the demands of the times.
The kind of material used for automobile frames greatly affects impact safety. High tensile strength steel is increasingly being used as material for automobile frames because of its advan-tages in saving weight and increasing safety. However, because of its hardness, high tensile strength steel is also difficult and time-consuming to process, is prone to tearing and returning to its shape before forming, and is costly in terms of wear and tear on presses and dies. Forming high tensile strength steel, therefore, has been done by heating the steel, to soften it for forming, and quenching with water after pressing. This approach, known as hot stamping, requires large heating and cooling facilities, and causes the surface of the processed steel to oxidize, so there is a need for improvement upon its low production efficiency. The servo press, developed by AIDA, uses a unique low-speed, high-torque motor and optimal motion control to eliminate tearing
and the tendency of high tensile strength steel to return to its original shape. Eliminating the need for heating and cooling, the servo press also offers greater forming efficiency and space saving. Manufacturers of high tensile strength steel are striving to make this material even stronger, and we will work with them to develop a new forming technology to handle the improved steels.
High-precision, high-value-added AIDA presses underpin world-class manufacturing.Presses are used to form not only body and frame components but also a wide range of engine, drivetrain, steering, transmis-sion, underbody, and other parts. For all of these parts, advances in materials, and safety requirements, have meant needs for even greater precision and strength.
AIDA’s UL Series of precision forming presses enable the forming of high-precision, high-value-added parts, previously regarded as impractical with traditional forming approaches. UL Series presses are often used to form engine and transmis-sion components critical to the basic functioning of automo-biles, and to make items such as parts for seats and seatbelts, which must meet high safety standards.
Large, super-precise dies are needed to produce motor
cores for the high-performance motors used in electric and hybrid vehicles, and AIDA’s MSP Series of high-speed, precision presses, with wide bed areas for handling various types of laminates, is among the world’s leaders in this field.
In recent years, AIDA has also been promoting its compact high-speed servo tandem line, a series of small servo presses and robots that together can equal the production capacity of a large transfer press. Compact high-speed servo tandem lines have been particularly outstanding in producing automatic transmission, brake, seat, and other types of small parts. AIDA is contributing to the evolution of manufacturing by providing production systems responding to the desires of automo-tive-related industries.
*The electrical power generated by a motor acting as a generator when its rotation is reversed for deceleration
PMX-L2-16000 press capable of working with large dies and processing higher tensile strength steel parts for automobiles
Large servo tandem line with a destack feeder unique to AIDA, installed at a joint venture manufacturing plant of a major British-Chinese automobile manufacturer
15 Annual Report 2017AIDA ENGINEERING, LTD. 16
Board of DirectorsSeven directors
(including two outside directors)
Compliance Committee
Internal ControlAudit Office
Corporate Governance Structure (As of June 20, 2017)
General Meeting of Shareholders
Board of AuditorsThree statutory auditors
(all three outside auditors)
Acco
un
ting
Au
dito
r
Reporting
Appointment/Dismissal Decisions
ReportingCollaboration
Internal Audit
Accounting Audit
Auditing
Reporting
Auditing
Reporting
Collaboration
Appointment/Dismissal Appointment/Dismissal
Direction
Business Divisions and Group Companies
Discussion/Reporting
President & CEO
Management Council(comprising operating officers
including five directors and others)
Operating Officers
(Millions of yen)
Category Stockoptions
Totalamount
Directors(excluding outside directors)
7 135 16 91 243
2 17 − − 17
3 25 − − 25
Outside directors
Statutory auditors(all outside)
Basicremuneration
Numberof
peopleBonus
*AIDA Group Compliance Hotline SystemA system for reporting compliance violations or possible violations when they are discovered—including legal infringements and improper conduct—to a reporting hotline in order to reinforce the AIDA Group’s compliance management efforts.
Note: The amounts shown above for basic and other remuneration include amounts attributable to one director who resigned from his position following the conclusion of the General Meeting of Shareholders held on June 28, 2016 and one director who resigned from his position following the conclusion of the General Meeting of Shareholders held on June 19, 2017.
Business executio
n structure
Appointment/Dismissal
Supervision
Discussion/Reporting
Basic Concepts on Corporate GovernanceThe Company sees its greatest management priorities as increasing corporate value by having each of the Group companies achieve sustainable and stable growth, in line with the corporate philosophy and management vision shared throughout the Group. Toward that end, it is working to maintain organic connections among the five manufac-turing locations, led by Japan, and sales and service locations throughout the world, and to ensure that properly functioning management and supporting corporate gover-nance systems are in place to enable the optimal exercise of each individual location’s functions.
Governance StructureDirectors, the Board of Directors, Operating Officers and the Management CouncilThe Company’s management structure comprises operat-ing officers, five of whom concurrently serve as directors, and two outside directors, both of whom are independent directors as defined by the Tokyo Stock Exchange. The Board of Directors functions as the decision-making body for important matters mandated by law and as a superviso-ry body for the execution of business operations. The Company has also adopted an operating officer system as a means of expediting management decision-making and clarifying lines of authority and responsibility. The Manage-ment Council—comprising the directors, the statutory auditors, the operating officers and other officers—discusses management policies and issues, and strives to
achieve a unified management purpose and swift execu-tion of business operations. Outside directors attend Board of Directors, Management Council, and other important meetings to develop a clear understanding of the current status of business operations at the Company and Group companies, and provide valuable advice and recommendations on the Company’s management, from an objective perspective.
Statutory Auditors and the Board of AuditorsThe Company appoints three statutory auditors, all of whom are outside auditors and independent officers as defined by the Tokyo Stock Exchange. The statutory auditors attend Board of Directors, Management Council, and other important meetings, in accordance with the audit plan, to oversee the performance of duties by directors and ask questions and express opinions to help ensure the legality and reasonableness of decision-making by the Board of Directors and other bodies. Statutory auditors also receive reports from the accounting auditor, hear business reports, inspect important documents, and carry out on-site inspections of the operations and assets of each division of the Company in their effort to develop a clear understanding of, and oversee, business operations.
Drawing on staff from the Internal Control Audit Office and the Finance & Accounting Department, and other general administration areas, the Company has created a system for supporting audits carried out by the statutory auditors.
Remuneration for Directors and Statutory AuditorsIn the fiscal year ended March 31, 2017, remuneration for the Company’s directors and statutory auditors was as follows:
Compliance and Internal Control SystemTo ensure legal compliance and high ethical standards in the conduct of its business, the Company has formulated the “AIDA Group Action Guidelines.” The Company has distributed relevant language versions of the guidelines to not only domestic but also overseas Group companies and is working for full awareness of them.
The Company has also established the Compliance Committee to strengthen its internal control system. In addition, the Internal Control Audit Office conducts training programs related to the AIDA Group Action Guidelines and performs audits of their implementation status and other aspects.
Furthermore, the Company strives to ensure the reliabil-ity of its financial reports in accordance with the Financial Instruments and Exchange Act by conducting reviews of the status of Group-wide control systems and control activities.
Compliance FrameworkBased on the AIDA Group Action Guidelines, the Internal Control Audit Office identifies compliance violations through the audit process, whistleblowing and other means and reports any violations to the chair of the Compliance Committee. The chair of the Compliance Committee convenes the committee after discussing the seriousness of the violation with the officer in charge and directs the department concerned to take countermeasures.
Compliance TrainingThe Internal Control Audit Office runs lectures on the Company’s corporate philosophy, the AIDA Group Action Guidelines and the AIDA Group Compliance Hotline System* for new employees joining the Company each year to promote understanding of these topics throughout our workforce. In addition, the Internal Control Audit Office runs visiting lectures at Group companies in and outside of Japan. The Internal Control Audit Office also seeks to instill
in employees a clear understanding of compliance by, for instance, reviewing matters including examples of wrong-doing at other companies.
Risk Management SystemRisks related to the execution of management strategies are analyzed, and appropriate countermeasures are considered by the relevant business units with exposure to that risk. These matters are then discussed as needed by the Board of Directors and the Management Council. Inher-ent risks in daily operations are usually handled by the respective business units, but depending on the nature of the risk we have also established a dynamic risk manage-ment structure to respond to such risks. This includes committees for health and safety, product liability, export administration, risk assessment promotion, and other cross-functional committees, as well as project teams assembled to address specific risks.
Information Security InitiativesInformation leaks and infringements of intellectual property rights concerning the technology and know-how of the Company, which boasts advanced technical capabilities, could shake the foundation of its management.
The Company, therefore, has formulated “Company Secrets Management Regulations” and the “AIDA Informa-tion Network System Management Regulations,” which it manages and operates as systems for preventing informa-tion leaks by blocking the outflow of information from inside the Company. The Company manages the software used in its business and monitors and restricts Internet access. The Company monitors its PCs, having adopted software to manage viruses and unauthorized access. Furthermore, the Company has put in place controls on remote access to in-house systems from overseas Group companies.
The Company restricts access by its employees to drawing data that falls within the scope of confidential information as a practical initiative to protect technical information. Moreover, when such information is to be disclosed to a third party, the Company will conclude a confidentiality agreement with the party to whom it is disclosed. The Company has developed information security measures whereby drawing data is encrypted so that it cannot be retrieved by an external device even if the data is leaked. In addition, the Company makes proactive efforts to obtain patents both in Japan and overseas in order to protect its intellectual property rights.
As outlined above, the Company provides lateral support for the promotion of its business strategy through rigorous information security measures and protection of its technical information and intellectual property rights.
Details on corporate governance and the status of the Company’s implementation of Japan’s Corporate Governance Code are provided in the Corporate Governance Report.http://www.aida.co.jp/en/ir/management/governance.html
Appointment/Dismissal
Corporate GovernanceWe are enhancing the global management system and corporate governance for ongoing increases in corporate value.
17 Annual Report 2017AIDA ENGINEERING, LTD. 18
Board of DirectorsSeven directors
(including two outside directors)
Compliance Committee
Internal ControlAudit Office
Corporate Governance Structure (As of June 20, 2017)
General Meeting of Shareholders
Board of AuditorsThree statutory auditors
(all three outside auditors)
Acco
un
ting
Au
dito
r
Reporting
Appointment/Dismissal Decisions
ReportingCollaboration
Internal Audit
Accounting Audit
Auditing
Reporting
Auditing
Reporting
Collaboration
Appointment/Dismissal Appointment/Dismissal
Direction
Business Divisions and Group Companies
Discussion/Reporting
President & CEO
Management Council(comprising operating officers
including five directors and others)
Operating Officers
(Millions of yen)
Category Stockoptions
Totalamount
Directors(excluding outside directors)
7 135 16 91 243
2 17 − − 17
3 25 − − 25
Outside directors
Statutory auditors(all outside)
Basicremuneration
Numberof
peopleBonus
*AIDA Group Compliance Hotline SystemA system for reporting compliance violations or possible violations when they are discovered—including legal infringements and improper conduct—to a reporting hotline in order to reinforce the AIDA Group’s compliance management efforts.
Note: The amounts shown above for basic and other remuneration include amounts attributable to one director who resigned from his position following the conclusion of the General Meeting of Shareholders held on June 28, 2016 and one director who resigned from his position following the conclusion of the General Meeting of Shareholders held on June 19, 2017.
Business executio
n structure
Appointment/Dismissal
Supervision
Discussion/Reporting
Basic Concepts on Corporate GovernanceThe Company sees its greatest management priorities as increasing corporate value by having each of the Group companies achieve sustainable and stable growth, in line with the corporate philosophy and management vision shared throughout the Group. Toward that end, it is working to maintain organic connections among the five manufac-turing locations, led by Japan, and sales and service locations throughout the world, and to ensure that properly functioning management and supporting corporate gover-nance systems are in place to enable the optimal exercise of each individual location’s functions.
Governance StructureDirectors, the Board of Directors, Operating Officers and the Management CouncilThe Company’s management structure comprises operat-ing officers, five of whom concurrently serve as directors, and two outside directors, both of whom are independent directors as defined by the Tokyo Stock Exchange. The Board of Directors functions as the decision-making body for important matters mandated by law and as a superviso-ry body for the execution of business operations. The Company has also adopted an operating officer system as a means of expediting management decision-making and clarifying lines of authority and responsibility. The Manage-ment Council—comprising the directors, the statutory auditors, the operating officers and other officers—discusses management policies and issues, and strives to
achieve a unified management purpose and swift execu-tion of business operations. Outside directors attend Board of Directors, Management Council, and other important meetings to develop a clear understanding of the current status of business operations at the Company and Group companies, and provide valuable advice and recommendations on the Company’s management, from an objective perspective.
Statutory Auditors and the Board of AuditorsThe Company appoints three statutory auditors, all of whom are outside auditors and independent officers as defined by the Tokyo Stock Exchange. The statutory auditors attend Board of Directors, Management Council, and other important meetings, in accordance with the audit plan, to oversee the performance of duties by directors and ask questions and express opinions to help ensure the legality and reasonableness of decision-making by the Board of Directors and other bodies. Statutory auditors also receive reports from the accounting auditor, hear business reports, inspect important documents, and carry out on-site inspections of the operations and assets of each division of the Company in their effort to develop a clear understanding of, and oversee, business operations.
Drawing on staff from the Internal Control Audit Office and the Finance & Accounting Department, and other general administration areas, the Company has created a system for supporting audits carried out by the statutory auditors.
Remuneration for Directors and Statutory AuditorsIn the fiscal year ended March 31, 2017, remuneration for the Company’s directors and statutory auditors was as follows:
Compliance and Internal Control SystemTo ensure legal compliance and high ethical standards in the conduct of its business, the Company has formulated the “AIDA Group Action Guidelines.” The Company has distributed relevant language versions of the guidelines to not only domestic but also overseas Group companies and is working for full awareness of them.
The Company has also established the Compliance Committee to strengthen its internal control system. In addition, the Internal Control Audit Office conducts training programs related to the AIDA Group Action Guidelines and performs audits of their implementation status and other aspects.
Furthermore, the Company strives to ensure the reliabil-ity of its financial reports in accordance with the Financial Instruments and Exchange Act by conducting reviews of the status of Group-wide control systems and control activities.
Compliance FrameworkBased on the AIDA Group Action Guidelines, the Internal Control Audit Office identifies compliance violations through the audit process, whistleblowing and other means and reports any violations to the chair of the Compliance Committee. The chair of the Compliance Committee convenes the committee after discussing the seriousness of the violation with the officer in charge and directs the department concerned to take countermeasures.
Compliance TrainingThe Internal Control Audit Office runs lectures on the Company’s corporate philosophy, the AIDA Group Action Guidelines and the AIDA Group Compliance Hotline System* for new employees joining the Company each year to promote understanding of these topics throughout our workforce. In addition, the Internal Control Audit Office runs visiting lectures at Group companies in and outside of Japan. The Internal Control Audit Office also seeks to instill
in employees a clear understanding of compliance by, for instance, reviewing matters including examples of wrong-doing at other companies.
Risk Management SystemRisks related to the execution of management strategies are analyzed, and appropriate countermeasures are considered by the relevant business units with exposure to that risk. These matters are then discussed as needed by the Board of Directors and the Management Council. Inher-ent risks in daily operations are usually handled by the respective business units, but depending on the nature of the risk we have also established a dynamic risk manage-ment structure to respond to such risks. This includes committees for health and safety, product liability, export administration, risk assessment promotion, and other cross-functional committees, as well as project teams assembled to address specific risks.
Information Security InitiativesInformation leaks and infringements of intellectual property rights concerning the technology and know-how of the Company, which boasts advanced technical capabilities, could shake the foundation of its management.
The Company, therefore, has formulated “Company Secrets Management Regulations” and the “AIDA Informa-tion Network System Management Regulations,” which it manages and operates as systems for preventing informa-tion leaks by blocking the outflow of information from inside the Company. The Company manages the software used in its business and monitors and restricts Internet access. The Company monitors its PCs, having adopted software to manage viruses and unauthorized access. Furthermore, the Company has put in place controls on remote access to in-house systems from overseas Group companies.
The Company restricts access by its employees to drawing data that falls within the scope of confidential information as a practical initiative to protect technical information. Moreover, when such information is to be disclosed to a third party, the Company will conclude a confidentiality agreement with the party to whom it is disclosed. The Company has developed information security measures whereby drawing data is encrypted so that it cannot be retrieved by an external device even if the data is leaked. In addition, the Company makes proactive efforts to obtain patents both in Japan and overseas in order to protect its intellectual property rights.
As outlined above, the Company provides lateral support for the promotion of its business strategy through rigorous information security measures and protection of its technical information and intellectual property rights.
Details on corporate governance and the status of the Company’s implementation of Japan’s Corporate Governance Code are provided in the Corporate Governance Report.http://www.aida.co.jp/en/ir/management/governance.html
Appointment/Dismissal
Corporate GovernanceWe are enhancing the global management system and corporate governance for ongoing increases in corporate value.
17 Annual Report 2017AIDA ENGINEERING, LTD. 18
Now considered a key aspect of growth strategy, corpo-rate governance has become a focus of investor attention. Corporate governance is organizational management undertaken, in accordance with management strategy, to sustainably enhance corporate value. It requires proper understanding of what should be done, and what should not be done, to increase, or prevent the loss of, corporate value.
Effective governance requires that an organization function amid open communication and responsive checks and balances. In AIDA’s case, the Management Council and Board of Directors do not exist simply as formalities; they are venues for active discussions and sharing of information, and provide competent leader-ship for achieving ongoing growth for the company.
Outsiders play a critical role in helping to ensure the company has an effective Board of Directors. Their presence, not simply as members of the board but as contributors of outside perspectives strengthen gover-nance by helping the board to recognize when some-thing viewed as acceptable from an inside perspective is not acceptable from an outside perspective. AIDA, one of the earliest companies to establish an outside officer system, now has a Board of Directors in which two of the seven members are outsiders and a Board of Auditors in which all three members are outsiders. The outside members of both of these organs bring to their duties records of achievement in fields such as finance, where expert risk management is essential, and the law.
As a former Ministry of Finance official who dealt with the financial crisis that led to dysfunctional corporate governance following the collapse of Japan’s bubble economy, I am applying my experience in that regard to fulfilling my duties as an outside director to help AIDA achieve sound growth over the long term.
Kimio Oiso was appointed to the position of Outside Director in June 2012 based on the expectation that the wealth of experience and sophisticated insight he has as a former corporate executive would enable him to contribute advice and recommendations from an objective perspective to help ensure the reasonableness and propriety of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors.
Hirofumi Gomi was appointed to the position of Outside Director in June 2015 based on the expectation that the wealth of experience and high-level expertise he has acquired handling matters concerning financial administration as the former comissioner of Japan’s Financial Services Agency, and in other government positions, would enable him to provide the Company with advice and recommendations from an objective perspective to help ensure the reasonableness and propriety of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors.
Hirofumi Gomi
Kimio Oiso
Shigeo Matsumoto was appointed to the position of Outside Statutory Auditor in June 2010 based on the expectation that his wealth of financial and management experience and sophisticated insight would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reasonableness of decision-making by the Board of Directors. As the Standing Statutory Auditor, he regularly communicates with the Representative Director, speaks with managers at all levels, and meets with the independent auditor to understand current conditions at AIDA ENGINEERING and AIDA Group companies. Based on what he learns, he freely expresses his opinions to the Company’s management. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors and all 9 meetings of the Board of Auditors.
Hiroshi Kanai was appointed to the position of Outside Statutory Auditor in June 2012 based on the expectation that the wealth of experience and sophisticated insight he has as a corporate execu-tive would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reason-ableness of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended 8 of 11 meetings of the Board of Directors and 8 of 9 meetings of the Board of Auditors.
Shigeo Matsumoto
Shigeru Makinouchi
Hiroshi Kanai
Shigeru Makinouchi was appointed to the position of Outside Statutory Auditor in June 2013 based on the expectation that the wealth of experience and sophisticated, specialized knowledge he has as an attorney-at-law would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reasonableness of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors and all 9 meetings of the Board of Auditors.
Rational for Appointment and Summary of Activities
Outside Directors
Message from an Outside Director
Hirofumi GomiOutside Director (Independent)
1970 Joined AIDA ENGINEERING, LTD.2001 Director (current position)2010 Chief Operating Officer (COO) (current position)2011 Executive Vice President (current position)2014 General Manager, Global Operation Promotion
Office (current position)2017 Chairman, ACCESS, LTD. (current position)
1996 Joined AIDA MANUFACTURING (MALAYSIA) SDN. BHD. (currently AIDA ENGINEERING (M) SDN. BHD.)
2011 Chairman and Managing Director, AIDA GREATER ASIA PTE. LTD. (current position)
2013 Director (current position)2014 Managing Executive Officer (current position)
Chairman, AIDA ENGINEERING CHINA CO., LTD. (current position)
2015 Chairman, AIDA ENGINEERING (M) SDN. BHD. (current position)Chairman, AIDA PRESS MACHINERY SYSTEMS CO., LTD. (current position)
Naoyoshi NakanishiDirector, Executive Vice President and Chief Operating Officer (COO)
Yap Teck MengDirector, Managing Executive Officer
2011 Director and Managing Executive Officer, The Dai-ichi Life Insurance Company, Ltd.
2012 Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
2014 Director, Senior Managing Executive Officer, The Dai-ichi Life Insurance Company, Ltd.
2015 President, The Dai-ichi Frontier Life Insurance Co., Ltd.
2017 Chairman, The Dai-ichi Frontier Life Insurance Co., Ltd. (current position)
Hiroshi KanaiOutside Statutory Auditor (Independent)
2001 Standing Auditor, The Fuji Bank, Ltd. (currently Mizuho Bank, Ltd.)
2002 Standing Statutory Auditor, Mizuho Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.) Standing Statutory Auditor, Fuji Research Institute Corporation
2004 Standing Statutory Auditor, Mizuho Information & Research Institute, Inc.
2010 Standing Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
Shigeo MatsumotoOutside Standing Statutory Auditor(Independent)
Corporate OfficersAs of June 20, 2017
Board of Directors Statutory Auditors
Outside Statutory Auditors
1979 Admission as an attorney-at-lawHead of Makinouchi Ageishi Law Office (current position)
2001 Practicing-Attorney-Professor for Civil Advoca-cy, Legal Training and Research Institute, Supreme Court of Japan
2013 Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
Shigeru MakinouchiOutside Statutory Auditor (Independent)
2011 Joined AIDA ENGINEERING, LTD.2015 Division Manager, Engineering Headquarters
(current position) Director (current position)2017 Managing Executive Officer (current position)
Division Manager, Sales Headquarters (current position)
Toshihiko SuzukiDirector, Managing Executive Officer
1976 Joined AIDA ENGINEERING, LTD.1989 Representative Director (current position)1992 President (current position)2001 Chief Executive Officer (CEO) (current position)2011 Division Manager, Research and Development
Headquarters (current position)2012 Chairman, AIDA AMERICA CORP. (current position)
Chairman, AIDA S.r.l. (current position)
Kimikazu AidaPresident and Chief Executive Officer (CEO)
2000 Statutory Auditor, The Dai-ichi Mutual Life Insurance Company (currently Dai-ichi Life Insurance Company, Ltd.)
2007 Representative Director and Senior Executive Officer, The Dai-ichi Mutual Life Insurance Company
2008 Statutory Auditor, AIDA ENGINEERING, LTD.2010 President, The Cardiovascular Institute2012 Director, AIDA ENGINEERING, LTD.
(current position)
Kimio OisoOutside Director (Independent)
1972 Joined the Ministry of Finance2000 Secretary-General, Executive Bureau,
Securities and Exchange Surveillance Commission, Financial Services Agency
2001 Director-General, Inspection Bureau of Financial Services Agency
2002 Director-General, Supervisory Bureau of Financial Services Agency
2004 Commissioner, Financial Services Agency2009 Visiting Professor, Aoyama Gakuin University
(current position)2011 Auditor, Miroku Jyoho Service Co., Ltd. 2014 Advisor, NISHIMURA & ASAHI (current position)2015 Senior Advisor, THE BOSTON CONSULTING
GROUP (current position)Director, AIDA ENGINEERING, LTD.
(current position)2016 Director, Infoteria Corporation (current position)
Director, Miroku Jyoho Service Co., Ltd. (current position)
*Appointed a Director of SBI Holdings, Inc. on June 29, 2017
Hirofumi Gomi*Outside Director (Independent)
1991 Joined AIDA ENGINEERING, LTD.2013 Director (current position)2016 Division Manager, Customer Service
Headquarters (current position)2017 Executive Officer (current position)
Ken MasudaDirector, Executive Officer
19 Annual Report 2017AIDA ENGINEERING, LTD. 20
Now considered a key aspect of growth strategy, corpo-rate governance has become a focus of investor attention. Corporate governance is organizational management undertaken, in accordance with management strategy, to sustainably enhance corporate value. It requires proper understanding of what should be done, and what should not be done, to increase, or prevent the loss of, corporate value.
Effective governance requires that an organization function amid open communication and responsive checks and balances. In AIDA’s case, the Management Council and Board of Directors do not exist simply as formalities; they are venues for active discussions and sharing of information, and provide competent leader-ship for achieving ongoing growth for the company.
Outsiders play a critical role in helping to ensure the company has an effective Board of Directors. Their presence, not simply as members of the board but as contributors of outside perspectives strengthen gover-nance by helping the board to recognize when some-thing viewed as acceptable from an inside perspective is not acceptable from an outside perspective. AIDA, one of the earliest companies to establish an outside officer system, now has a Board of Directors in which two of the seven members are outsiders and a Board of Auditors in which all three members are outsiders. The outside members of both of these organs bring to their duties records of achievement in fields such as finance, where expert risk management is essential, and the law.
As a former Ministry of Finance official who dealt with the financial crisis that led to dysfunctional corporate governance following the collapse of Japan’s bubble economy, I am applying my experience in that regard to fulfilling my duties as an outside director to help AIDA achieve sound growth over the long term.
Kimio Oiso was appointed to the position of Outside Director in June 2012 based on the expectation that the wealth of experience and sophisticated insight he has as a former corporate executive would enable him to contribute advice and recommendations from an objective perspective to help ensure the reasonableness and propriety of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors.
Hirofumi Gomi was appointed to the position of Outside Director in June 2015 based on the expectation that the wealth of experience and high-level expertise he has acquired handling matters concerning financial administration as the former comissioner of Japan’s Financial Services Agency, and in other government positions, would enable him to provide the Company with advice and recommendations from an objective perspective to help ensure the reasonableness and propriety of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors.
Hirofumi Gomi
Kimio Oiso
Shigeo Matsumoto was appointed to the position of Outside Statutory Auditor in June 2010 based on the expectation that his wealth of financial and management experience and sophisticated insight would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reasonableness of decision-making by the Board of Directors. As the Standing Statutory Auditor, he regularly communicates with the Representative Director, speaks with managers at all levels, and meets with the independent auditor to understand current conditions at AIDA ENGINEERING and AIDA Group companies. Based on what he learns, he freely expresses his opinions to the Company’s management. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors and all 9 meetings of the Board of Auditors.
Hiroshi Kanai was appointed to the position of Outside Statutory Auditor in June 2012 based on the expectation that the wealth of experience and sophisticated insight he has as a corporate execu-tive would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reason-ableness of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended 8 of 11 meetings of the Board of Directors and 8 of 9 meetings of the Board of Auditors.
Shigeo Matsumoto
Shigeru Makinouchi
Hiroshi Kanai
Shigeru Makinouchi was appointed to the position of Outside Statutory Auditor in June 2013 based on the expectation that the wealth of experience and sophisticated, specialized knowledge he has as an attorney-at-law would enable him to ask questions and express opinions from an objective perspective to help ensure the legality and reasonableness of decision-making by the Board of Directors. In the fiscal year ended March 31, 2017, he attended all 11 meetings of the Board of Directors and all 9 meetings of the Board of Auditors.
Rational for Appointment and Summary of Activities
Outside Directors
Message from an Outside Director
Hirofumi GomiOutside Director (Independent)
1970 Joined AIDA ENGINEERING, LTD.2001 Director (current position)2010 Chief Operating Officer (COO) (current position)2011 Executive Vice President (current position)2014 General Manager, Global Operation Promotion
Office (current position)2017 Chairman, ACCESS, LTD. (current position)
1996 Joined AIDA MANUFACTURING (MALAYSIA) SDN. BHD. (currently AIDA ENGINEERING (M) SDN. BHD.)
2011 Chairman and Managing Director, AIDA GREATER ASIA PTE. LTD. (current position)
2013 Director (current position)2014 Managing Executive Officer (current position)
Chairman, AIDA ENGINEERING CHINA CO., LTD. (current position)
2015 Chairman, AIDA ENGINEERING (M) SDN. BHD. (current position)Chairman, AIDA PRESS MACHINERY SYSTEMS CO., LTD. (current position)
Naoyoshi NakanishiDirector, Executive Vice President and Chief Operating Officer (COO)
Yap Teck MengDirector, Managing Executive Officer
2011 Director and Managing Executive Officer, The Dai-ichi Life Insurance Company, Ltd.
2012 Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
2014 Director, Senior Managing Executive Officer, The Dai-ichi Life Insurance Company, Ltd.
2015 President, The Dai-ichi Frontier Life Insurance Co., Ltd.
2017 Chairman, The Dai-ichi Frontier Life Insurance Co., Ltd. (current position)
Hiroshi KanaiOutside Statutory Auditor (Independent)
2001 Standing Auditor, The Fuji Bank, Ltd. (currently Mizuho Bank, Ltd.)
2002 Standing Statutory Auditor, Mizuho Corporate Bank, Ltd. (currently Mizuho Bank, Ltd.) Standing Statutory Auditor, Fuji Research Institute Corporation
2004 Standing Statutory Auditor, Mizuho Information & Research Institute, Inc.
2010 Standing Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
Shigeo MatsumotoOutside Standing Statutory Auditor(Independent)
Corporate OfficersAs of June 20, 2017
Board of Directors Statutory Auditors
Outside Statutory Auditors
1979 Admission as an attorney-at-lawHead of Makinouchi Ageishi Law Office (current position)
2001 Practicing-Attorney-Professor for Civil Advoca-cy, Legal Training and Research Institute, Supreme Court of Japan
2013 Statutory Auditor, AIDA ENGINEERING, LTD. (current position)
Shigeru MakinouchiOutside Statutory Auditor (Independent)
2011 Joined AIDA ENGINEERING, LTD.2015 Division Manager, Engineering Headquarters
(current position) Director (current position)2017 Managing Executive Officer (current position)
Division Manager, Sales Headquarters (current position)
Toshihiko SuzukiDirector, Managing Executive Officer
1976 Joined AIDA ENGINEERING, LTD.1989 Representative Director (current position)1992 President (current position)2001 Chief Executive Officer (CEO) (current position)2011 Division Manager, Research and Development
Headquarters (current position)2012 Chairman, AIDA AMERICA CORP. (current position)
Chairman, AIDA S.r.l. (current position)
Kimikazu AidaPresident and Chief Executive Officer (CEO)
2000 Statutory Auditor, The Dai-ichi Mutual Life Insurance Company (currently Dai-ichi Life Insurance Company, Ltd.)
2007 Representative Director and Senior Executive Officer, The Dai-ichi Mutual Life Insurance Company
2008 Statutory Auditor, AIDA ENGINEERING, LTD.2010 President, The Cardiovascular Institute2012 Director, AIDA ENGINEERING, LTD.
(current position)
Kimio OisoOutside Director (Independent)
1972 Joined the Ministry of Finance2000 Secretary-General, Executive Bureau,
Securities and Exchange Surveillance Commission, Financial Services Agency
2001 Director-General, Inspection Bureau of Financial Services Agency
2002 Director-General, Supervisory Bureau of Financial Services Agency
2004 Commissioner, Financial Services Agency2009 Visiting Professor, Aoyama Gakuin University
(current position)2011 Auditor, Miroku Jyoho Service Co., Ltd. 2014 Advisor, NISHIMURA & ASAHI (current position)2015 Senior Advisor, THE BOSTON CONSULTING
GROUP (current position)Director, AIDA ENGINEERING, LTD.
(current position)2016 Director, Infoteria Corporation (current position)
Director, Miroku Jyoho Service Co., Ltd. (current position)
*Appointed a Director of SBI Holdings, Inc. on June 29, 2017
Hirofumi Gomi*Outside Director (Independent)
1991 Joined AIDA ENGINEERING, LTD.2013 Director (current position)2016 Division Manager, Customer Service
Headquarters (current position)2017 Executive Officer (current position)
Ken MasudaDirector, Executive Officer
19 Annual Report 2017AIDA ENGINEERING, LTD. 20
Material Balance
Environmental objectives Targets for the year ended March 31, 2017 Results for the year ended March 31, 2017
Maintain compliance with laws and ordinances (air, water, noise, etc.)
Promote the recycling of waste materials and prevent further waste generation (Efforts to recycle and reuse)
Promote energy conservation
Improve environmental protection initiatives
Develop environmentally friendly products
• Results of maintenance inspections on processes and auxiliary equipment: Good
• Results of efforts to maintain performance within specified limits: No problems encountered
• Total emissions: 1,281 tons• Industrial waste recycling rate: 89%; target achieved
• Total energy usage (crude oil equivalent): 3,973 kL; target achieved
• CO2 emissions: 32.7 tons CO2/¥100 million (production volume)
• Green material procurement and recordkeeping: Good• Promoted environmentally friendly retrofitting services• Tracked reductions in initial customer claims for product oil leaks
• Eliminated large isolation transformers by adapting noise-reduction measures
• Achieved size and weight reductions for servo motors and other components
• Achieved net shape forming of thick plate
• Examine how to keep process and auxiliary equipment values within regulatory limits, and further reduce them
• Emissions* target: 1,700 tons or less• Industrial waste recycling ratio: 86% or higher
• Feedback about environmental-related product requirements• Introduction of eco-conscious processes and auxiliary equipment• Efforts to enact measures to reduce environmental impact
• Examine products in terms of energy-saving, resource conservation, toxic chemical avoidance measures, vibration/noise measures, recyclability, and controlling the amount of emissions and the usage of environmentally harmful substances
• Total energy usage (crude oil equivalent): 4,500 kL or below• CO2 emissions (unit conversion coefficient): 28.0 tons CO2/
¥100 million (production volume) or lower
*Emissions: Total emissions of general waste and industrial waste
Inputs(for the year ended March 31, 2017*) AIDA’s Business Flow Outputs
(for the year ended March 31, 2017*)
Energy
Raw Materials
3,973
1303
1,0754,632
00
Water
Electricity
Heavy Oil
Kerosene
City Gas
LPG
Gasoline
Diesel
32 km3
14,315240
5,9851,055
26
t
t
t
t
t
Steel Materials
Nonferrous Metals
Castings
Forgings
Paper
Research and Development
Engineering
Procurement
Manufacturing
Shipping and Transport
Installation
After-Sales Service
kL
million kWh
kL
kL
kNm3
m3
kL
kL
Air Emissions
Wastewater Emissions129 km3Discharge (Total)
Waste
811,200
351,072
t
t
t
t
General Waste
Industrial Waste
Recycled Amount
• General Waste
• Industrial Waste
ProductsTotal Energy Inputs (in terms of crude oil)
7,8854,284
035
CO2
Exhaust Gases (NOx)
Exhaust Gases (SOx)
Exhaust Gases (Soot)
t-CO2
kg
kg
kg
Chemicals 66 t
*The Environmental impact of AIDA production processes for the year ended March 31, 2017 (All figures are rounded) Scope of Analysis: AIDA ENGINEERING, LTD. (Sagami Plant, Tsukui Plant, and Shimokuzawa Plant)
Recognizing that protecting the earth’s environment is one of the most important goals shared by all mankind, as AIDA ENGINEERING, Ltd., rises to the challenge of attaining “a harmony between people and technology” that creates a people-friendly environment as it pursues original technolo-gies in the metalforming field, it will establish and implement a workplace environment where environmental protections will be incorporated into the engineering, manufacturing, and sales activities for its presses, automation equipment, and auxiliary equipment.
Environmental Policyhttp://www.aida.co.jp/en/company/csr/index.html
At our headquarters plant, in Sagamihara City, we have installed a CGS (a cogeneration system providing heat and electric power) together with a Genelink system (a water heating and cooling system fueled by hot wastewater from the CGS). By combining these systems with existing CGSs and other systems, we have succeeded in slashing our total energy cost and smoothing our electricity demand.
In addition, applying electricity generated by CGS and solar power systems, we developed an emergency power system for our headquarters plant. The system allows the plant to function temporarily without external power supplies during times of emergency and protects primary servers when access to regular power sources has been interrupted.
Environmental ManagementAIDA has established targets for reducing its environmental impact, in line with the AIDA’s Environmental Policy, and is implementing various types of measures to achieve them. The Environmental Management Organization, which is chaired by the environmental project director and includes members appointed by each of the Company’s depart-ments to handle environmental matters, takes the lead in advancing environmental preservation activities.
“As a leading global company, we will strive to protect the environment, reduce energy consumption and devel-op technologies.” That is the vision statement we have put forth in our new Mid-Term Management Plan, and we are committed to fulfilling it by contributing to customers’ environmental initiatives through the development of
External Evaluations of Environmental Protection Activities In January 2017, AIDA ENGINEERING, LTD. was selected as a winner in the Kanagawa Smart Energy Plan Category of The 2016 Kanagawa Global Environment Awards, spon-sored by Kanagawa Prefecture and the Kanagawa Global Environment Protection Promotion Committee. These awards are presented to groups and individuals engaged in outstanding environmental protection activities that are consistent with prefectural ordinances and other guidelines. In its selection for this recognition, AIDA was cited for its adoption of renewable energy through energy management applying gas cogeneration systems and for the effective-ness of its initiatives in energy efficiency and other areas.
Quality and Safety of Products and ServiceTo provide customers with the superior quality they expect, AIDA practices strict quality control in every production process. Our engineering department uses Finite Element Method (FEM) software to perform structural analysis on major structural components to visually identify risks, and our manufacturing and inspection departments conduct exacting checks to ensure strict compliance with applicable standards. Once products have been delivered and installed, our sales departments ask customers to complete surveys, the results of which are then provided as customer evaluation-and-request feedback within the Company, and are used to further increase customer satisfaction.
To ensure safety within customer manufacturing environ-ments, we develop and introduce safety equipment, and provide safety training at the customer site when we install a press and at other times when necessary.
R&D and Intellectual PropertyThe AIDA Group Action Guidelines call for the provision of premium, high-quality products and services, and the creation and application of intellectual property, based on recognition of the importance of confidential information and intellectual property. Toward that end, therefore, we devote significant efforts to strategic R&D and the creation and management of intellectual property.
Under the leadership of our Research and Develop-ment Headquarters, and with key contributions by the engineering, manufacturing, and other relevant depart-ments, we are vigorously advancing R&D activities. Focus-ing on areas such as the environment and safety, which have significance for society at large, we specify R&D themes based on management and business strategy, and then pursue results that will lead to greater competitiveness for individual products and overall business expansion.
To bolster our global patent activities, we have positioned the Intellectual Property Office under the Global Operation Promotion Office. The Intellectual Property Office centrally manages intellectual property of AIDA Group companies in Japan and abroad. The office becomes involved in the R&D activities of the Research and Development Headquarters early on and pursues intellectual property strategies in close cooperation with development staff members.
Social Contribution ActivitiesSagamihara City, where AIDA’s headquarters is located, has a program in which it enlists the assistance of compa-nies to provide local junior high school students with oppor-tunities to visit businesses and develop a sense of what it means to work. As part of its efforts to support the develop-ment of future generations of workers, AIDA participates in that program by inviting students on a tour of its manufac-turing plant. We also accept tour requests from high schools and universities throughout Japan.
During the fiscal year ended March 31, 2017, a total of 65 junior high school, high school, and university students partici-pated in our plant tours. On each occasion, we explained what AIDA does, discussed finished products made with AIDA presses, and led students on a tour through our manufacturing facilities. Our overall aim was to communicate our social roles and responsibilities, and the significance of manufacturing.
As a company that has the resources to do so, AIDA will continue to undertake various activities aimed at building good relationships with local communities.
CGS facility (left) and The 2016 Kanagawa Global Environment Award certificate
Students on a plant tour
products with outstanding performance from both environ-mental and energy-saving perspectives.
CSR InitiativesAs a guide for reducing our environmental impact, we have established the AIDA’s Environmental Policy. We also devote significant efforts to meeting the expectations of our customers by pursuing cutting-edge R&D and ensuring the quality and safety of our products and services.
AIDA’s Environmental Policy (excerpted)
Overview of InitiativesEnvironmental Objectives and Targets
21 Annual Report 2017AIDA ENGINEERING, LTD. 22
Material Balance
Environmental objectives Targets for the year ended March 31, 2017 Results for the year ended March 31, 2017
Maintain compliance with laws and ordinances (air, water, noise, etc.)
Promote the recycling of waste materials and prevent further waste generation (Efforts to recycle and reuse)
Promote energy conservation
Improve environmental protection initiatives
Develop environmentally friendly products
• Results of maintenance inspections on processes and auxiliary equipment: Good
• Results of efforts to maintain performance within specified limits: No problems encountered
• Total emissions: 1,281 tons• Industrial waste recycling rate: 89%; target achieved
• Total energy usage (crude oil equivalent): 3,973 kL; target achieved
• CO2 emissions: 32.7 tons CO2/¥100 million (production volume)
• Green material procurement and recordkeeping: Good• Promoted environmentally friendly retrofitting services• Tracked reductions in initial customer claims for product oil leaks
• Eliminated large isolation transformers by adapting noise-reduction measures
• Achieved size and weight reductions for servo motors and other components
• Achieved net shape forming of thick plate
• Examine how to keep process and auxiliary equipment values within regulatory limits, and further reduce them
• Emissions* target: 1,700 tons or less• Industrial waste recycling ratio: 86% or higher
• Feedback about environmental-related product requirements• Introduction of eco-conscious processes and auxiliary equipment• Efforts to enact measures to reduce environmental impact
• Examine products in terms of energy-saving, resource conservation, toxic chemical avoidance measures, vibration/noise measures, recyclability, and controlling the amount of emissions and the usage of environmentally harmful substances
• Total energy usage (crude oil equivalent): 4,500 kL or below• CO2 emissions (unit conversion coefficient): 28.0 tons CO2/
¥100 million (production volume) or lower
*Emissions: Total emissions of general waste and industrial waste
Inputs(for the year ended March 31, 2017*) AIDA’s Business Flow Outputs
(for the year ended March 31, 2017*)
Energy
Raw Materials
3,973
1303
1,0754,632
00
Water
Electricity
Heavy Oil
Kerosene
City Gas
LPG
Gasoline
Diesel
32 km3
14,315240
5,9851,055
26
t
t
t
t
t
Steel Materials
Nonferrous Metals
Castings
Forgings
Paper
Research and Development
Engineering
Procurement
Manufacturing
Shipping and Transport
Installation
After-Sales Service
kL
million kWh
kL
kL
kNm3
m3
kL
kL
Air Emissions
Wastewater Emissions129 km3Discharge (Total)
Waste
811,200
351,072
t
t
t
t
General Waste
Industrial Waste
Recycled Amount
• General Waste
• Industrial Waste
ProductsTotal Energy Inputs (in terms of crude oil)
7,8854,284
035
CO2
Exhaust Gases (NOx)
Exhaust Gases (SOx)
Exhaust Gases (Soot)
t-CO2
kg
kg
kg
Chemicals 66 t
*The Environmental impact of AIDA production processes for the year ended March 31, 2017 (All figures are rounded) Scope of Analysis: AIDA ENGINEERING, LTD. (Sagami Plant, Tsukui Plant, and Shimokuzawa Plant)
Recognizing that protecting the earth’s environment is one of the most important goals shared by all mankind, as AIDA ENGINEERING, Ltd., rises to the challenge of attaining “a harmony between people and technology” that creates a people-friendly environment as it pursues original technolo-gies in the metalforming field, it will establish and implement a workplace environment where environmental protections will be incorporated into the engineering, manufacturing, and sales activities for its presses, automation equipment, and auxiliary equipment.
Environmental Policyhttp://www.aida.co.jp/en/company/csr/index.html
At our headquarters plant, in Sagamihara City, we have installed a CGS (a cogeneration system providing heat and electric power) together with a Genelink system (a water heating and cooling system fueled by hot wastewater from the CGS). By combining these systems with existing CGSs and other systems, we have succeeded in slashing our total energy cost and smoothing our electricity demand.
In addition, applying electricity generated by CGS and solar power systems, we developed an emergency power system for our headquarters plant. The system allows the plant to function temporarily without external power supplies during times of emergency and protects primary servers when access to regular power sources has been interrupted.
Environmental ManagementAIDA has established targets for reducing its environmental impact, in line with the AIDA’s Environmental Policy, and is implementing various types of measures to achieve them. The Environmental Management Organization, which is chaired by the environmental project director and includes members appointed by each of the Company’s depart-ments to handle environmental matters, takes the lead in advancing environmental preservation activities.
“As a leading global company, we will strive to protect the environment, reduce energy consumption and devel-op technologies.” That is the vision statement we have put forth in our new Mid-Term Management Plan, and we are committed to fulfilling it by contributing to customers’ environmental initiatives through the development of
External Evaluations of Environmental Protection Activities In January 2017, AIDA ENGINEERING, LTD. was selected as a winner in the Kanagawa Smart Energy Plan Category of The 2016 Kanagawa Global Environment Awards, spon-sored by Kanagawa Prefecture and the Kanagawa Global Environment Protection Promotion Committee. These awards are presented to groups and individuals engaged in outstanding environmental protection activities that are consistent with prefectural ordinances and other guidelines. In its selection for this recognition, AIDA was cited for its adoption of renewable energy through energy management applying gas cogeneration systems and for the effective-ness of its initiatives in energy efficiency and other areas.
Quality and Safety of Products and ServiceTo provide customers with the superior quality they expect, AIDA practices strict quality control in every production process. Our engineering department uses Finite Element Method (FEM) software to perform structural analysis on major structural components to visually identify risks, and our manufacturing and inspection departments conduct exacting checks to ensure strict compliance with applicable standards. Once products have been delivered and installed, our sales departments ask customers to complete surveys, the results of which are then provided as customer evaluation-and-request feedback within the Company, and are used to further increase customer satisfaction.
To ensure safety within customer manufacturing environ-ments, we develop and introduce safety equipment, and provide safety training at the customer site when we install a press and at other times when necessary.
R&D and Intellectual PropertyThe AIDA Group Action Guidelines call for the provision of premium, high-quality products and services, and the creation and application of intellectual property, based on recognition of the importance of confidential information and intellectual property. Toward that end, therefore, we devote significant efforts to strategic R&D and the creation and management of intellectual property.
Under the leadership of our Research and Develop-ment Headquarters, and with key contributions by the engineering, manufacturing, and other relevant depart-ments, we are vigorously advancing R&D activities. Focus-ing on areas such as the environment and safety, which have significance for society at large, we specify R&D themes based on management and business strategy, and then pursue results that will lead to greater competitiveness for individual products and overall business expansion.
To bolster our global patent activities, we have positioned the Intellectual Property Office under the Global Operation Promotion Office. The Intellectual Property Office centrally manages intellectual property of AIDA Group companies in Japan and abroad. The office becomes involved in the R&D activities of the Research and Development Headquarters early on and pursues intellectual property strategies in close cooperation with development staff members.
Social Contribution ActivitiesSagamihara City, where AIDA’s headquarters is located, has a program in which it enlists the assistance of compa-nies to provide local junior high school students with oppor-tunities to visit businesses and develop a sense of what it means to work. As part of its efforts to support the develop-ment of future generations of workers, AIDA participates in that program by inviting students on a tour of its manufac-turing plant. We also accept tour requests from high schools and universities throughout Japan.
During the fiscal year ended March 31, 2017, a total of 65 junior high school, high school, and university students partici-pated in our plant tours. On each occasion, we explained what AIDA does, discussed finished products made with AIDA presses, and led students on a tour through our manufacturing facilities. Our overall aim was to communicate our social roles and responsibilities, and the significance of manufacturing.
As a company that has the resources to do so, AIDA will continue to undertake various activities aimed at building good relationships with local communities.
CGS facility (left) and The 2016 Kanagawa Global Environment Award certificate
Students on a plant tour
products with outstanding performance from both environ-mental and energy-saving perspectives.
CSR InitiativesAs a guide for reducing our environmental impact, we have established the AIDA’s Environmental Policy. We also devote significant efforts to meeting the expectations of our customers by pursuing cutting-edge R&D and ensuring the quality and safety of our products and services.
AIDA’s Environmental Policy (excerpted)
Overview of InitiativesEnvironmental Objectives and Targets
21 Annual Report 2017AIDA ENGINEERING, LTD. 22
2016
14.111.8
2017
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)Employees Employees Employees Employees
2016
367353
2017 2016
17.012.9
2017 2016
558554
2017 2016
26.224.2
2017 2016
836845
2017 2016
18.018.4
2017 2016
1901982017
1.5
3.1
1.9
4.65.0
4.0
3.0
2.0
1.0
0
(Billions of yen)
Capital Expenditures R&D Expenditures
1.0 1.01.3 1.2
2.0
1.1
4.8
1.2
2016
61.2 52.7
2017 2016
14.6
2017
14.0
2016
0.2
0.1
20172016 2017
4.65.7
2016 2017
49.8 40.2 5.67.8
2016 2017
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
21.7%78.0% 0.2%
Press Machines Service Others
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Automotive related
Electric related
8.8%76.3% 14.9%
Others
80.0
60.0
40.0
20.0
0
(Billions of yen)
Orders
2013 2014 2015
70.2
2016
73.0 75.476.6 69.5
Net Sales
76.8 75.5
62.667.5
57.8
2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
74.0 72.0
Net Sales Breakdown
17.6%
EuropeNet Sales Breakdown
19.2%
AsiaNet Sales Breakdown
35.9%
JapanNet Sales Breakdown
27.3%
Americas
Investing for the Future
Net Sales and Employees by Geographic Segment
At a Glance
Net Sales by Business Division and Press Machine Market Segment
Worldwide2nd in Net Sales tofrom
Capacities Ranging
35Tons4,0006.6%
Net Sales
Increase(Forecast)
Sustainable Growth
Net Cash Provided by Operating Activities
Stable Operating Cash FlowEnabling Growth Investment
Generation of Cash Flow
50
40
30
20
10
0
50
40
30
20
10
0
(%)(yen)
3030
40
3025
49.5
30.3 29.8 29.7
Payout RatioCash Dividends per Share
32.0
37.0
30.0%
Payout Ratio
or Higher
Continuation of Stable Dividends
12.0
9.0
6.0
3.0
0
12
9
6
3
0
(%)
3.7
Operating Income Operating Income Ratio
9.1
(Billions of yen)
6.36.5
10.2
7.8 8.0
6.6
10.69.8
7.0
9.7
10.2%
Operating Income RatioAvg. for Past 3 Years
Stable Earnings Power
Capital Investment
129.3%Increase(Forecast)
(Billions of yen) (%)80.0
60.0
40.0
20.0
0
80
60
40
20
0
2013 2014 2015 2016
64.4 64.868.7
52.9
63.868.2
59.6
Net Assets Shareholders’ Equity Ratio
2017
70.869.5
67.2
3.0%
Net Assets
Increase
Robust Financial Base
19
Net Sales PressProduct Series
Net Cash Used in Investing Activities
2013 2014 2015 2016 2017
10.0
7.5
5.0
2.5
0
-2.5
-5.0
-7.5
(Billions of yen)
5.1
-3.1
5.95.9
-1.2 -1.2
-3.2
2.4
-5.6
6.5
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries Years ended March 31
AIDA is a globally recognized brand in the field of press forming systems, and in the automotive-related, consumer electronics and electric machinery industries in particular. With customers throughout the world, we are now the second-largest press manufacturer by sales.
As a forming systems builder with development capabilities that allow us to respond to all manner of customer needs, we offer a wide variety of product series, from small, general-purpose machines to large, special-purpose machines.
23 Annual Report 2017AIDA ENGINEERING, LTD. 24
2016
14.111.8
2017
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)Employees Employees Employees Employees
2016
367353
2017 2016
17.012.9
2017 2016
558554
2017 2016
26.224.2
2017 2016
836845
2017 2016
18.018.4
2017 2016
1901982017
1.5
3.1
1.9
4.65.0
4.0
3.0
2.0
1.0
0
(Billions of yen)
Capital Expenditures R&D Expenditures
1.0 1.01.3 1.2
2.0
1.1
4.8
1.2
2016
61.2 52.7
2017 2016
14.6
2017
14.0
2016
0.2
0.1
20172016 2017
4.65.7
2016 2017
49.8 40.2 5.67.8
2016 2017
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
21.7%78.0% 0.2%
Press Machines Service Others
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Net Sales(Billions of yen)
Automotive related
Electric related
8.8%76.3% 14.9%
Others
80.0
60.0
40.0
20.0
0
(Billions of yen)
Orders
2013 2014 2015
70.2
2016
73.0 75.476.6 69.5
Net Sales
76.8 75.5
62.667.5
57.8
2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
2013 2014 2015 2016 2017 2018(Target)
74.0 72.0
Net Sales Breakdown
17.6%
EuropeNet Sales Breakdown
19.2%
AsiaNet Sales Breakdown
35.9%
JapanNet Sales Breakdown
27.3%
Americas
Investing for the Future
Net Sales and Employees by Geographic Segment
At a Glance
Net Sales by Business Division and Press Machine Market Segment
Worldwide2nd in Net Sales tofrom
Capacities Ranging
35Tons4,0006.6%
Net Sales
Increase(Forecast)
Sustainable Growth
Net Cash Provided by Operating Activities
Stable Operating Cash FlowEnabling Growth Investment
Generation of Cash Flow
50
40
30
20
10
0
50
40
30
20
10
0
(%)(yen)
3030
40
3025
49.5
30.3 29.8 29.7
Payout RatioCash Dividends per Share
32.0
37.0
30.0%
Payout Ratio
or Higher
Continuation of Stable Dividends
12.0
9.0
6.0
3.0
0
12
9
6
3
0
(%)
3.7
Operating Income Operating Income Ratio
9.1
(Billions of yen)
6.36.5
10.2
7.8 8.0
6.6
10.69.8
7.0
9.7
10.2%
Operating Income RatioAvg. for Past 3 Years
Stable Earnings Power
Capital Investment
129.3%Increase(Forecast)
(Billions of yen) (%)80.0
60.0
40.0
20.0
0
80
60
40
20
0
2013 2014 2015 2016
64.4 64.868.7
52.9
63.868.2
59.6
Net Assets Shareholders’ Equity Ratio
2017
70.869.5
67.2
3.0%
Net Assets
Increase
Robust Financial Base
19
Net Sales PressProduct Series
Net Cash Used in Investing Activities
2013 2014 2015 2016 2017
10.0
7.5
5.0
2.5
0
-2.5
-5.0
-7.5
(Billions of yen)
5.1
-3.1
5.95.9
-1.2 -1.2
-3.2
2.4
-5.6
6.5
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries Years ended March 31
AIDA is a globally recognized brand in the field of press forming systems, and in the automotive-related, consumer electronics and electric machinery industries in particular. With customers throughout the world, we are now the second-largest press manufacturer by sales.
As a forming systems builder with development capabilities that allow us to respond to all manner of customer needs, we offer a wide variety of product series, from small, general-purpose machines to large, special-purpose machines.
23 Annual Report 2017AIDA ENGINEERING, LTD. 24
25 Annual Report 2017AIDA ENGINEERING, LTD. 26
Note: Amounts presented from the year ended March 31, 2012 were retrospectively adjusted to reflect the changes in accounting policies of the Japanese employee stock ownership plan (J-ESOP).
Orders, Net sales, and Income (Loss)
Orders
Net sales
Cost of sales
Selling, general and administrative expenses
Operating income (loss)
Income (loss) before income taxes
Income taxes
Net income (loss) attributable to owners of parent
Profitability Ratio
Operating income ratio
Total Assets, Total Shareholders’ Equity andInterest-bearing Debt
Total assets
Total shareholders’ equity
Total interest-bearing debt
Shareholders’ equity ratio
Capital Expenditures, Depreciation and Amortization and R&D Expenditures
Capital expenditures
Depreciation and amortization
R&D expenditures
Return Indicators
Return on equity (ROE)
Return on assets (ROA)
Cash Flows
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Free cash flow
Net cash provided by (used in) financing activities
Cash and cash equivalents at the end of year
Per Share Data
Net income (basic)
Cash dividends
Shareholders’ equity
Stock Information (at Year-End)
Stock price
Market capitalization (millions of yen)
Number of shares issued (shares)
Other Data
Number of employees
¥ 65,785
64,513
49,023
10,124
5,365
5,411
1,825
3,585
8.3%
¥ 85,036
61,326
1,500
72.1%
¥ 4,771
2,333
1,658
5.7%
4.1%
¥ (1,103)
(0)
(1,103)
(2,162)
7,420
¥ 50.27
15.00
911.28
¥ 626
49,546
79,147,321
1,610
¥ 40,883
60,675
50,148
9,571
955
145
(664)
810
1.6%
¥ 74,796
57,869
500
77.3%
¥ 3,248
2,728
1,567
1.4%
1.0%
¥ 2,475
3,985
6,460
(3,599)
9,859
¥ 12.41
5.00
905.90
¥ 278
22,002
79,147,321
1,629
¥ 33,403
34,898
32,313
8,114
(5,529)
(8,945)
3,144
(12,090)
(15.8)%
¥ 63,867
45,706
1,124
71.5%
¥ 578
2,684
1,203
(23.4)%
(17.4)%
¥ 4,857
(294)
4,562
309
14,580
¥ (189.36)
5.00
715.08
¥ 390
30,867
79,147,321
1,507
¥ 47,924
40,989
33,343
6,180
1,466
1,098
(134)
1,232
3.6%
¥ 67,342
45,221
1,500
67.0%
¥ 689
1,403
1,079
2.7%
1.9%
¥ (2,359)
(1,253)
(3,613)
(1,029)
9,569
¥ 19.51
6.00
745.27
¥ 374
29,601
79,147,321
1,478
¥ 58,021
52,240
42,589
7,424
2,225
2,927
79
2,847
4.3%
¥ 71,300
47,476
2,048
66.5%
¥ 2,667
1,378
909
6.2%
4.1%
¥ 8,749
(1,231)
7,517
35
17,129
¥ 46.97
14.00
781.58
¥ 476
37,674
79,147,321
1,566
¥ 73,033
57,812
46,393
7,657
3,760
4,019
211
3,808
6.5%
¥ 82,118
52,990
1,500
64.4%
¥ 1,555
1,362
1,008
7.6%
5.0%
¥ 5,938
(1,277)
4,660
(1,446)
22,281
¥ 62.74
19.00
868.33
¥ 756
59,835
79,147,321
1,647
¥ 76,670
69,594
54,617
8,656
6,320
6,584
1,456
5,127
9.1%
¥ 91,830
59,655
2,491
64.8%
¥ 3,117
1,548
1,076
9.1%
5.9%
¥ 5,978
(3,254)
2,723
26
26,038
¥ 83.95
25.00
969.35
¥ 982
77,722
79,147,321
1,728
¥ 70,256
76,897
59,650
9,383
7,863
8,543
2,337
6,205
10.2%
¥ 105,126
67,254
1,891
63.8%
¥ 1,958
1,712
1,345
9.8%
6.3%
¥ 5,100
(1,237)
3,863
(2,077)
29,958
¥ 100.99
30.00
1,088.96
¥ 1,380
101,633
73,647,321
1,818
(17.0)
(10.6)
(10.0)
(7.8)
(17.7)
(18.9)
(30.5)
(13.8)
–
1.1
3.0
(4.1)
–
(55.0)
(1.7)
(3.2)
–
–
(63.6)
–
–
–
(13.4)
2008 2009 2010 2011 2012 2013 2014 2015 2016 vs 2017
2008 2009 2010 2011 2012 2013 2014 2015 2016 vs 2017
% changeMillions of yen
¥ 75,474
75,529
57,544
9,947
8,037
8,329
2,546
5,782
10.6%
¥ 100,609
68,758
4,663
68.2%
¥ 4,654
1,995
1,237
8.5%
5.6%
¥ 6,596
(5,655)
941
915
29,524
¥ 93.78
30.00
1,112.51
¥ 978
72,027
73,647,321
1,951
2016
2016
Yen % change
(13.8)
33.3
3.0
1.0
1.0
–
(0.1)
¥ 62,655
67,547
51,761
9,168
6,617
6,754
1,769
4,985
9.8%
¥ 101,683
70,834
4,470
69.5%
¥ 2,093
1,961
1,197
7.2%
4.9%
¥ 2,400
(3,118)
(718)
(1,954)
25,572
¥ 80.82
40.00
1,145.74
¥ 988
72,763
73,647,321
1,950
2017
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Consolidated Financial Summary
25 Annual Report 2017AIDA ENGINEERING, LTD. 26
Note: Amounts presented from the year ended March 31, 2012 were retrospectively adjusted to reflect the changes in accounting policies of the Japanese employee stock ownership plan (J-ESOP).
Orders, Net sales, and Income (Loss)
Orders
Net sales
Cost of sales
Selling, general and administrative expenses
Operating income (loss)
Income (loss) before income taxes
Income taxes
Net income (loss) attributable to owners of parent
Profitability Ratio
Operating income ratio
Total Assets, Total Shareholders’ Equity andInterest-bearing Debt
Total assets
Total shareholders’ equity
Total interest-bearing debt
Shareholders’ equity ratio
Capital Expenditures, Depreciation and Amortization and R&D Expenditures
Capital expenditures
Depreciation and amortization
R&D expenditures
Return Indicators
Return on equity (ROE)
Return on assets (ROA)
Cash Flows
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Free cash flow
Net cash provided by (used in) financing activities
Cash and cash equivalents at the end of year
Per Share Data
Net income (basic)
Cash dividends
Shareholders’ equity
Stock Information (at Year-End)
Stock price
Market capitalization (millions of yen)
Number of shares issued (shares)
Other Data
Number of employees
¥ 65,785
64,513
49,023
10,124
5,365
5,411
1,825
3,585
8.3%
¥ 85,036
61,326
1,500
72.1%
¥ 4,771
2,333
1,658
5.7%
4.1%
¥ (1,103)
(0)
(1,103)
(2,162)
7,420
¥ 50.27
15.00
911.28
¥ 626
49,546
79,147,321
1,610
¥ 40,883
60,675
50,148
9,571
955
145
(664)
810
1.6%
¥ 74,796
57,869
500
77.3%
¥ 3,248
2,728
1,567
1.4%
1.0%
¥ 2,475
3,985
6,460
(3,599)
9,859
¥ 12.41
5.00
905.90
¥ 278
22,002
79,147,321
1,629
¥ 33,403
34,898
32,313
8,114
(5,529)
(8,945)
3,144
(12,090)
(15.8)%
¥ 63,867
45,706
1,124
71.5%
¥ 578
2,684
1,203
(23.4)%
(17.4)%
¥ 4,857
(294)
4,562
309
14,580
¥ (189.36)
5.00
715.08
¥ 390
30,867
79,147,321
1,507
¥ 47,924
40,989
33,343
6,180
1,466
1,098
(134)
1,232
3.6%
¥ 67,342
45,221
1,500
67.0%
¥ 689
1,403
1,079
2.7%
1.9%
¥ (2,359)
(1,253)
(3,613)
(1,029)
9,569
¥ 19.51
6.00
745.27
¥ 374
29,601
79,147,321
1,478
¥ 58,021
52,240
42,589
7,424
2,225
2,927
79
2,847
4.3%
¥ 71,300
47,476
2,048
66.5%
¥ 2,667
1,378
909
6.2%
4.1%
¥ 8,749
(1,231)
7,517
35
17,129
¥ 46.97
14.00
781.58
¥ 476
37,674
79,147,321
1,566
¥ 73,033
57,812
46,393
7,657
3,760
4,019
211
3,808
6.5%
¥ 82,118
52,990
1,500
64.4%
¥ 1,555
1,362
1,008
7.6%
5.0%
¥ 5,938
(1,277)
4,660
(1,446)
22,281
¥ 62.74
19.00
868.33
¥ 756
59,835
79,147,321
1,647
¥ 76,670
69,594
54,617
8,656
6,320
6,584
1,456
5,127
9.1%
¥ 91,830
59,655
2,491
64.8%
¥ 3,117
1,548
1,076
9.1%
5.9%
¥ 5,978
(3,254)
2,723
26
26,038
¥ 83.95
25.00
969.35
¥ 982
77,722
79,147,321
1,728
¥ 70,256
76,897
59,650
9,383
7,863
8,543
2,337
6,205
10.2%
¥ 105,126
67,254
1,891
63.8%
¥ 1,958
1,712
1,345
9.8%
6.3%
¥ 5,100
(1,237)
3,863
(2,077)
29,958
¥ 100.99
30.00
1,088.96
¥ 1,380
101,633
73,647,321
1,818
(17.0)
(10.6)
(10.0)
(7.8)
(17.7)
(18.9)
(30.5)
(13.8)
–
1.1
3.0
(4.1)
–
(55.0)
(1.7)
(3.2)
–
–
(63.6)
–
–
–
(13.4)
2008 2009 2010 2011 2012 2013 2014 2015 2016 vs 2017
2008 2009 2010 2011 2012 2013 2014 2015 2016 vs 2017
% changeMillions of yen
¥ 75,474
75,529
57,544
9,947
8,037
8,329
2,546
5,782
10.6%
¥ 100,609
68,758
4,663
68.2%
¥ 4,654
1,995
1,237
8.5%
5.6%
¥ 6,596
(5,655)
941
915
29,524
¥ 93.78
30.00
1,112.51
¥ 978
72,027
73,647,321
1,951
2016
2016
Yen % change
(13.8)
33.3
3.0
1.0
1.0
–
(0.1)
¥ 62,655
67,547
51,761
9,168
6,617
6,754
1,769
4,985
9.8%
¥ 101,683
70,834
4,470
69.5%
¥ 2,093
1,961
1,197
7.2%
4.9%
¥ 2,400
(3,118)
(718)
(1,954)
25,572
¥ 80.82
40.00
1,145.74
¥ 988
72,763
73,647,321
1,950
2017
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Consolidated Financial Summary
27 Annual Report 2017AIDA ENGINEERING, LTD. 28
6.2 5.7
9.19.8
8.5
15
10
5
0
(%)
Net Income Attributable to Owners of Parent/ROE
5.13.8
7.5
5.0
2.5
02013 2014 2015 2016
Net Income Attributable to Owners of Parent
(Billions of yen)ROE
2017
Cost and Expenses/Operating Income/Operating Income Ratio
20162017
19.2
27.3
35.9
22.6
34.7
23.9
(%)
Japan Americas EuropeAsia
Sales by Geographic Segment(to External Customers)
17.6
18.7
20162017
78.0
81.1
0.20.3
Press Machines Service Others
Sales by Business Division
21.7
18.6
(%)
Domestic Overseas
Net Sales
Orders Order Backlog
Orders/Order Backlog
4.94.9
7.2
Cost of SalesOperating Income Ratio
Selling, General and Administrative ExpensesOperating Income
7.6
80.0
60.0
40.0
20.0
0
58.551.9
73.076.6
70.2
2013 2014 2015 2016
51.4
(Billions of yen)
20172017
75.4
51.851.8
62.6
46.9
80.0
60.0
40.0
20.0
02017
(Billions of yen)
69.5
57.8
48.5
21.0
37.6
20.1
2013 2014 2015
52.7
24.1
2016
76.8 75.5
26.226.226.2
49.349.349.3
67.5
24.224.224.2
43.243.243.2
80.0
60.0
40.0
20.0
0
20
15
10
5
02017
(Billions of yen) (%)
6.3
8.6
54.6
7.8
9.3
59.6 57.5
3.77.6
46.3
20162013 2014 2015
9.1
6.5
10.2 10.610.69.8
51.751.751.7
9.19.19.1
6.66.66.69.9
8.0
Orders, Sales, and Earnings
During the fiscal year ended March 31, 2017, the global economy made steady progress on the road to recovery as advanced economies experienced solid growth and emerg-ing economies showed signs of improvement thanks to factors that included recovery of resource prices. In Japan, economic performance reflected a modest recovery, helped by growing exports and improving consumer sentiment. Going forward, recovery of the global economy is expected to continue; however, uncertainty is persistent due to mount-ing protectionist pressures, growing geopolitical risks, and other factors.
In the forming-machinery industry, increases in orders were recorded at both the global level and in Japan, where orders rose 5.8% year on year, to ¥154.5 billion, based on data from the Japan Forming Machinery Association.
Under conditions such as those described above, the AIDA Group worked to implement its Mid-Term Manage-ment Plan covering the fiscal years ended March 31, 2015–2017. Guided by the vision statement “As a cutting-edge corporation that supports manufacturing, we will further develop and pursue environmentally friendly and energy-saving products,” we endeavored to strengthen our business infrastructure and increase our earnings by imple-menting the three basic policies in the plan. Specifically, “Put in place a solid corporate foundation that will enable even further business expansion,” “Establish AIDA as a top brand in the global marketplace,” and “Pursue new forming technologies.”
During the fiscal year ended March 31, 2017, we focused on strengthening human resources, adding produc-tion capacity, and enhancing other aspects of our business infrastructure, while also focusing attention on garnering
orders by globally linking the sales activities of Group companies.
Despite these efforts, order intake for the fiscal year declined 17.0%, compared to the previous fiscal year, to ¥62.6 billion, due to the loss of specific major orders and other factors. The order backlog fell 9.4%, to ¥46.9 billion. Net sales were ¥67.5 billion, down 10.6%, due to yen appre-ciation when booking overseas sales on a yen-conversion basis and also due to the effects of declining press machine sales to automotive-related industries in Japan and Asia. Given the combined impacts of lower sales and yen appreci-ation, we recorded operating income of ¥6.6 billion (down 17.7%), ordinary income of ¥6.7 billion (down 19.0%), and net income attributable to owners of parent of ¥4.9 billion (down 13.8%).
As for profit distribution, our basic policy is to maintain a stable dividend, with a consolidated dividend payout ratio of 30% or higher, while also providing for the stability of our business infrastructure and maintaining internal reserves for future growth investments. For the fiscal year ended March 31, 2017, we set the per-share dividend at ¥40, including an ordinary dividend of ¥30 and a commemorative dividend of ¥10 to mark the 100th anniversary of our founding, which we celebrated in March 2017.
Result by Business Divisions and Geographic Segments
Business Divisions
Press MachinesFactors such as a lack of orders for large tandem lines resulted in order intake of ¥48.7 billion, a 20.0% decline compared to the previous fiscal year. Net sales were ¥52.7 billion, down 13.9%, due to the effects of yen appreciation and lower sales to automotive-related manufacturers in Japan and Asia.
ServiceOrder intake ended the year at ¥13.5 billion, down 5.0%. Nevertheless, the modernization/retrofitting business and other segments were robust, and net sales were ¥14.6 billion, up 4.3%.
Others Order intake was ¥309 million, up 27.9%, while net sales ended the year at ¥160 million, down 28.0%.
Geographic Segments
JapanDue to lower sales of press machines to automotive-related industries, net sales were ¥41.1 billion, down 6.5% compared to the previous fiscal year, and segment profit, held back by this decline, totaled ¥3.5 billion, down 29.1%.
AsiaWeak sales to automotive-related industries resulted in net sales of ¥15.2 billion, down 27.3%, which, together with other factors, restricted segment profit to ¥1.5 billion, down 34.5%.
AmericasOn a local-currency basis, net sales rose compared to the prior fiscal year. On a yen-conversion basis, however, net sales fell 1.3%, to ¥18.7 billion. Segment profit, on the other hand, rose 12.8%, to ¥1.4 billion, as a result of reductions in cost of sales and selling, general and administrative expenses.
EuropeDue to yen appreciation and fewer sales of mid-size and large presses to automotive-related industries, net sales declined 16.9%, to ¥12.3 billion. However, lower cost of sales and selling, general and administrative expenses allowed for a lower segment loss of ¥65 million, a ¥425 million improvement from the previous fiscal year.
Financial PositionAs of March 31, 2017, assets increased by ¥1.0 billion compared to the previous fiscal year end, to ¥101.6 billion. Primary factors for this result include a decrease of ¥3.2 billion in cash on hand and at banks, and short-term securities; a ¥3.3 billion increase in notes and accounts receivable–trade, and electronically recorded monetary claims–operating; a ¥1.0 billion increase in investment securities resulting from a rise in share prices; and a ¥1.1 billion decrease in the insurance reserve fund.
Liabilities decreased ¥1.0 billion compared to the previous fiscal year end, to ¥30.8 billion. This decrease was primarily due to a decrease of ¥500 million in income taxes after the payment of taxes and other adjustments.
Net assets increased ¥2.0 billion compared to the previous fiscal year end, to ¥70.8 billion. This increase was primarily due to a ¥3.0 billion increase in retained earnings and a ¥1.5 billion decrease in foreign currency translation adjustments. As a result, our shareholders’ equity ratio at the end of the consolidated fiscal year was 69.5%.
Cash FlowCash and cash equivalents as of March 31, 2017 decreased ¥3.9 billion from the previous fiscal year end, to ¥25.5 billion.
Net cash provided by operating activities was ¥2.4 billion, compared with net cash provided by operating activi-ties of ¥6.5 billion in the previous fiscal year. Major inflows included income before income taxes of ¥6.7 billion, and depreciation and amortization of ¥1.9 billion. Major outflows included an increase in accounts receivable-trade of ¥3.4 billion, and income tax payments of ¥1.9 billion.
Net cash used in investing activities was ¥3.1 billion,
compared with net cash used in investing activities of ¥5.6 billion in the previous fiscal year. Major outflows included payments for purchase of tangible and intangible assets of ¥2.4 billion.
Net cash used in financing activities was ¥1.9 billion, compared with net cash provided financing activities of ¥915 million in the previous fiscal year. Major outflows included cash dividend payments of ¥1.9 billion.
Capital ExpendituresIn the fiscal year under review, the Company recorded capital expenditures totaling ¥2.0 billion. Principal expendi-tures included the following items.1. Installation of large machining centers to strengthen
production functions in China and Italy.2. Expansion of existing plants, and enhancement of auxilia-
ry functions at existing plants, to promote greater in-house manufacturing and production streamlining in Japan.
3. Consolidation and establishment of new offices to improve sales and service activities in China.
Research and DevelopmentR&D investments for the fiscal year totaled ¥1.1 billion. These funds went toward the development of new and core technologies, such as servo motor systems for presses, forming systems for handling lighter-weight products, and IoT-related technologies. Funds were also used to strength-en core product offerings through the development of products such as a hot-stamping servo press and a new general-purpose straightside servo press.
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries Years ended March 31
Management’s Discussion and Analysis of Business Results and Financial Position
27 Annual Report 2017AIDA ENGINEERING, LTD. 28
6.2 5.7
9.19.8
8.5
15
10
5
0
(%)
Net Income Attributable to Owners of Parent/ROE
5.13.8
7.5
5.0
2.5
02013 2014 2015 2016
Net Income Attributable to Owners of Parent
(Billions of yen)ROE
2017
Cost and Expenses/Operating Income/Operating Income Ratio
20162017
19.2
27.3
35.9
22.6
34.7
23.9
(%)
Japan Americas EuropeAsia
Sales by Geographic Segment(to External Customers)
17.6
18.7
20162017
78.0
81.1
0.20.3
Press Machines Service Others
Sales by Business Division
21.7
18.6
(%)
Domestic Overseas
Net Sales
Orders Order Backlog
Orders/Order Backlog
4.94.9
7.2
Cost of SalesOperating Income Ratio
Selling, General and Administrative ExpensesOperating Income
7.6
80.0
60.0
40.0
20.0
0
58.551.9
73.076.6
70.2
2013 2014 2015 2016
51.4
(Billions of yen)
20172017
75.4
51.851.8
62.6
46.9
80.0
60.0
40.0
20.0
02017
(Billions of yen)
69.5
57.8
48.5
21.0
37.6
20.1
2013 2014 2015
52.7
24.1
2016
76.8 75.5
26.226.226.2
49.349.349.3
67.5
24.224.224.2
43.243.243.2
80.0
60.0
40.0
20.0
0
20
15
10
5
02017
(Billions of yen) (%)
6.3
8.6
54.6
7.8
9.3
59.6 57.5
3.77.6
46.3
20162013 2014 2015
9.1
6.5
10.2 10.610.69.8
51.751.751.7
9.19.19.1
6.66.66.69.9
8.0
Orders, Sales, and Earnings
During the fiscal year ended March 31, 2017, the global economy made steady progress on the road to recovery as advanced economies experienced solid growth and emerg-ing economies showed signs of improvement thanks to factors that included recovery of resource prices. In Japan, economic performance reflected a modest recovery, helped by growing exports and improving consumer sentiment. Going forward, recovery of the global economy is expected to continue; however, uncertainty is persistent due to mount-ing protectionist pressures, growing geopolitical risks, and other factors.
In the forming-machinery industry, increases in orders were recorded at both the global level and in Japan, where orders rose 5.8% year on year, to ¥154.5 billion, based on data from the Japan Forming Machinery Association.
Under conditions such as those described above, the AIDA Group worked to implement its Mid-Term Manage-ment Plan covering the fiscal years ended March 31, 2015–2017. Guided by the vision statement “As a cutting-edge corporation that supports manufacturing, we will further develop and pursue environmentally friendly and energy-saving products,” we endeavored to strengthen our business infrastructure and increase our earnings by imple-menting the three basic policies in the plan. Specifically, “Put in place a solid corporate foundation that will enable even further business expansion,” “Establish AIDA as a top brand in the global marketplace,” and “Pursue new forming technologies.”
During the fiscal year ended March 31, 2017, we focused on strengthening human resources, adding produc-tion capacity, and enhancing other aspects of our business infrastructure, while also focusing attention on garnering
orders by globally linking the sales activities of Group companies.
Despite these efforts, order intake for the fiscal year declined 17.0%, compared to the previous fiscal year, to ¥62.6 billion, due to the loss of specific major orders and other factors. The order backlog fell 9.4%, to ¥46.9 billion. Net sales were ¥67.5 billion, down 10.6%, due to yen appre-ciation when booking overseas sales on a yen-conversion basis and also due to the effects of declining press machine sales to automotive-related industries in Japan and Asia. Given the combined impacts of lower sales and yen appreci-ation, we recorded operating income of ¥6.6 billion (down 17.7%), ordinary income of ¥6.7 billion (down 19.0%), and net income attributable to owners of parent of ¥4.9 billion (down 13.8%).
As for profit distribution, our basic policy is to maintain a stable dividend, with a consolidated dividend payout ratio of 30% or higher, while also providing for the stability of our business infrastructure and maintaining internal reserves for future growth investments. For the fiscal year ended March 31, 2017, we set the per-share dividend at ¥40, including an ordinary dividend of ¥30 and a commemorative dividend of ¥10 to mark the 100th anniversary of our founding, which we celebrated in March 2017.
Result by Business Divisions and Geographic Segments
Business Divisions
Press MachinesFactors such as a lack of orders for large tandem lines resulted in order intake of ¥48.7 billion, a 20.0% decline compared to the previous fiscal year. Net sales were ¥52.7 billion, down 13.9%, due to the effects of yen appreciation and lower sales to automotive-related manufacturers in Japan and Asia.
ServiceOrder intake ended the year at ¥13.5 billion, down 5.0%. Nevertheless, the modernization/retrofitting business and other segments were robust, and net sales were ¥14.6 billion, up 4.3%.
Others Order intake was ¥309 million, up 27.9%, while net sales ended the year at ¥160 million, down 28.0%.
Geographic Segments
JapanDue to lower sales of press machines to automotive-related industries, net sales were ¥41.1 billion, down 6.5% compared to the previous fiscal year, and segment profit, held back by this decline, totaled ¥3.5 billion, down 29.1%.
AsiaWeak sales to automotive-related industries resulted in net sales of ¥15.2 billion, down 27.3%, which, together with other factors, restricted segment profit to ¥1.5 billion, down 34.5%.
AmericasOn a local-currency basis, net sales rose compared to the prior fiscal year. On a yen-conversion basis, however, net sales fell 1.3%, to ¥18.7 billion. Segment profit, on the other hand, rose 12.8%, to ¥1.4 billion, as a result of reductions in cost of sales and selling, general and administrative expenses.
EuropeDue to yen appreciation and fewer sales of mid-size and large presses to automotive-related industries, net sales declined 16.9%, to ¥12.3 billion. However, lower cost of sales and selling, general and administrative expenses allowed for a lower segment loss of ¥65 million, a ¥425 million improvement from the previous fiscal year.
Financial PositionAs of March 31, 2017, assets increased by ¥1.0 billion compared to the previous fiscal year end, to ¥101.6 billion. Primary factors for this result include a decrease of ¥3.2 billion in cash on hand and at banks, and short-term securities; a ¥3.3 billion increase in notes and accounts receivable–trade, and electronically recorded monetary claims–operating; a ¥1.0 billion increase in investment securities resulting from a rise in share prices; and a ¥1.1 billion decrease in the insurance reserve fund.
Liabilities decreased ¥1.0 billion compared to the previous fiscal year end, to ¥30.8 billion. This decrease was primarily due to a decrease of ¥500 million in income taxes after the payment of taxes and other adjustments.
Net assets increased ¥2.0 billion compared to the previous fiscal year end, to ¥70.8 billion. This increase was primarily due to a ¥3.0 billion increase in retained earnings and a ¥1.5 billion decrease in foreign currency translation adjustments. As a result, our shareholders’ equity ratio at the end of the consolidated fiscal year was 69.5%.
Cash FlowCash and cash equivalents as of March 31, 2017 decreased ¥3.9 billion from the previous fiscal year end, to ¥25.5 billion.
Net cash provided by operating activities was ¥2.4 billion, compared with net cash provided by operating activi-ties of ¥6.5 billion in the previous fiscal year. Major inflows included income before income taxes of ¥6.7 billion, and depreciation and amortization of ¥1.9 billion. Major outflows included an increase in accounts receivable-trade of ¥3.4 billion, and income tax payments of ¥1.9 billion.
Net cash used in investing activities was ¥3.1 billion,
compared with net cash used in investing activities of ¥5.6 billion in the previous fiscal year. Major outflows included payments for purchase of tangible and intangible assets of ¥2.4 billion.
Net cash used in financing activities was ¥1.9 billion, compared with net cash provided financing activities of ¥915 million in the previous fiscal year. Major outflows included cash dividend payments of ¥1.9 billion.
Capital ExpendituresIn the fiscal year under review, the Company recorded capital expenditures totaling ¥2.0 billion. Principal expendi-tures included the following items.1. Installation of large machining centers to strengthen
production functions in China and Italy.2. Expansion of existing plants, and enhancement of auxilia-
ry functions at existing plants, to promote greater in-house manufacturing and production streamlining in Japan.
3. Consolidation and establishment of new offices to improve sales and service activities in China.
Research and DevelopmentR&D investments for the fiscal year totaled ¥1.1 billion. These funds went toward the development of new and core technologies, such as servo motor systems for presses, forming systems for handling lighter-weight products, and IoT-related technologies. Funds were also used to strength-en core product offerings through the development of products such as a hot-stamping servo press and a new general-purpose straightside servo press.
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries Years ended March 31
Management’s Discussion and Analysis of Business Results and Financial Position
29 Annual Report 2017AIDA ENGINEERING, LTD. 30
Business Division:
Net sales
Press machines
Service
Others
Consolidated
Geographic Segment:
Net sales
Japan
Asia
Americas
Europe
Reconciliation
Consolidated
Operating income (loss)
Japan
Asia
Americas
Europe
Reconciliation
Consolidated
¥ 44,969
12,619
223
¥ 57,812
¥ 39,714
17,482
11,924
11,822
(23,131)
¥ 57,812
¥ 2,074
1,462
493
(49)
(219)
¥ 3,760
¥ 56,963
12,439
191
¥ 69,594
¥ 39,679
19,954
17,397
16,418
(23,855)
¥ 69,594
¥ 4,181
1,585
902
(717)
368
¥ 6,320
¥ 62,893
13,803
199
¥ 76,897
¥ 45,994
18,858
24,699
14,948
(27,604)
¥ 76,897
¥ 4,765
1,478
1,587
78
(45)
¥ 7,863
(13.9)
4.3
(28.0)
(10.6)
(6.5)
(27.3)
(1.3)
(16.9)
–
(10.6)
(29.1)
(34.5)
12.8
–
–
(17.7)
2014 2015 2016 vs 20172013
% changeMillions of yen
Net Sales
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Consolidated
Operating Income (Loss)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Consolidated
¥ 12,064
14,638
14,569
16,541
¥ 57,812
¥ 854
1,215
989
702
¥ 3,760
¥ 14,960
16,913
17,930
19,789
¥ 69,594
¥ 1,522
1,603
1,667
1,526
¥ 6,320
¥ 17,168
16,994
21,950
20,782
¥ 76,897
¥ 1,815
1,814
2,535
1,696
¥ 7,863
(14.1)
(16.2)
(18.1)
6.6
(10.6)
(39.6)
(3.6)
(45.7)
31.8
(17.7)
2014 2015
¥ 17,857
19,611
19,393
18,668
¥ 75,529
¥ 2,097
2,135
2,221
1,582
¥ 8,037
2016 2016 vs 20172013
% changeMillions of yen
¥ 61,234
14,072
222
¥ 75,529
¥ 44,041
20,989
19,008
14,853
(23,363)
¥ 75,529
¥ 4,967
2,321
1,327
(490)
(88)
¥ 8,037
2016
¥ 15,338
16,429
15,881
19,897
¥ 67,547
¥ 1,266
2,059
1,205
2,086
¥ 6,617
2017
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Quarterly Information
¥ 52,711
14,674
160
¥ 67,547
¥ 41,176
15,259
18,752
12,337
(19,979)
¥ 67,547
¥ 3,521
1,519
1,496
(65)
144
¥ 6,617
6.0
2.0
4.0
0
-2.0
3.1
1.9 2.01.5
2013 2014 2015 2016
Free Cash Flow
(Billions of yen)
Capital Expenditures
Free Cash Flow/Capital Expenditures
2.7
4.63.8
-0.7
4.6
2017
30.0
20.0
10.0
0
26.0
29.9
22.2
2013 2014 2015 2016
(Billions of yen)
Cash and Cash Equivalents at the End of the Year
29.5
25.5
2017
120.0
80.0
40.0
0
105.1
82.191.8
67.259.6
52.9
2013 2014 2015 2016
(Billions of yen)
Total Assets Total Net Assets
Total Assets/Total Net Assets
100.6
2017
68.7
101.6
70.8
0.9
Orders, Sales, and Earnings
During the fiscal year ended March 31, 2017, the global economy made steady progress on the road to recovery as advanced economies experienced solid growth and emerg-ing economies showed signs of improvement thanks to factors that included recovery of resource prices. In Japan, economic performance reflected a modest recovery, helped by growing exports and improving consumer sentiment. Going forward, recovery of the global economy is expected to continue; however, uncertainty is persistent due to mount-ing protectionist pressures, growing geopolitical risks, and other factors.
In the forming-machinery industry, increases in orders were recorded at both the global level and in Japan, where orders rose 5.8% year on year, to ¥154.5 billion, based on data from the Japan Forming Machinery Association.
Under conditions such as those described above, the AIDA Group worked to implement its Mid-Term Manage-ment Plan covering the fiscal years ended March 31, 2015–2017. Guided by the vision statement “As a cutting-edge corporation that supports manufacturing, we will further develop and pursue environmentally friendly and energy-saving products,” we endeavored to strengthen our business infrastructure and increase our earnings by imple-menting the three basic policies in the plan. Specifically, “Put in place a solid corporate foundation that will enable even further business expansion,” “Establish AIDA as a top brand in the global marketplace,” and “Pursue new forming technologies.”
During the fiscal year ended March 31, 2017, we focused on strengthening human resources, adding produc-tion capacity, and enhancing other aspects of our business infrastructure, while also focusing attention on garnering
orders by globally linking the sales activities of Group companies.
Despite these efforts, order intake for the fiscal year declined 17.0%, compared to the previous fiscal year, to ¥62.6 billion, due to the loss of specific major orders and other factors. The order backlog fell 9.4%, to ¥46.9 billion. Net sales were ¥67.5 billion, down 10.6%, due to yen appre-ciation when booking overseas sales on a yen-conversion basis and also due to the effects of declining press machine sales to automotive-related industries in Japan and Asia. Given the combined impacts of lower sales and yen appreci-ation, we recorded operating income of ¥6.6 billion (down 17.7%), ordinary income of ¥6.7 billion (down 19.0%), and net income attributable to owners of parent of ¥4.9 billion (down 13.8%).
As for profit distribution, our basic policy is to maintain a stable dividend, with a consolidated dividend payout ratio of 30% or higher, while also providing for the stability of our business infrastructure and maintaining internal reserves for future growth investments. For the fiscal year ended March 31, 2017, we set the per-share dividend at ¥40, including an ordinary dividend of ¥30 and a commemorative dividend of ¥10 to mark the 100th anniversary of our founding, which we celebrated in March 2017.
Result by Business Divisions and Geographic Segments
Business Divisions
Press MachinesFactors such as a lack of orders for large tandem lines resulted in order intake of ¥48.7 billion, a 20.0% decline compared to the previous fiscal year. Net sales were ¥52.7 billion, down 13.9%, due to the effects of yen appreciation and lower sales to automotive-related manufacturers in Japan and Asia.
ServiceOrder intake ended the year at ¥13.5 billion, down 5.0%. Nevertheless, the modernization/retrofitting business and other segments were robust, and net sales were ¥14.6 billion, up 4.3%.
Others Order intake was ¥309 million, up 27.9%, while net sales ended the year at ¥160 million, down 28.0%.
Geographic Segments
JapanDue to lower sales of press machines to automotive-related industries, net sales were ¥41.1 billion, down 6.5% compared to the previous fiscal year, and segment profit, held back by this decline, totaled ¥3.5 billion, down 29.1%.
AsiaWeak sales to automotive-related industries resulted in net sales of ¥15.2 billion, down 27.3%, which, together with other factors, restricted segment profit to ¥1.5 billion, down 34.5%.
AmericasOn a local-currency basis, net sales rose compared to the prior fiscal year. On a yen-conversion basis, however, net sales fell 1.3%, to ¥18.7 billion. Segment profit, on the other hand, rose 12.8%, to ¥1.4 billion, as a result of reductions in cost of sales and selling, general and administrative expenses.
EuropeDue to yen appreciation and fewer sales of mid-size and large presses to automotive-related industries, net sales declined 16.9%, to ¥12.3 billion. However, lower cost of sales and selling, general and administrative expenses allowed for a lower segment loss of ¥65 million, a ¥425 million improvement from the previous fiscal year.
Financial PositionAs of March 31, 2017, assets increased by ¥1.0 billion compared to the previous fiscal year end, to ¥101.6 billion. Primary factors for this result include a decrease of ¥3.2 billion in cash on hand and at banks, and short-term securities; a ¥3.3 billion increase in notes and accounts receivable–trade, and electronically recorded monetary claims–operating; a ¥1.0 billion increase in investment securities resulting from a rise in share prices; and a ¥1.1 billion decrease in the insurance reserve fund.
Liabilities decreased ¥1.0 billion compared to the previous fiscal year end, to ¥30.8 billion. This decrease was primarily due to a decrease of ¥500 million in income taxes after the payment of taxes and other adjustments.
Net assets increased ¥2.0 billion compared to the previous fiscal year end, to ¥70.8 billion. This increase was primarily due to a ¥3.0 billion increase in retained earnings and a ¥1.5 billion decrease in foreign currency translation adjustments. As a result, our shareholders’ equity ratio at the end of the consolidated fiscal year was 69.5%.
Cash FlowCash and cash equivalents as of March 31, 2017 decreased ¥3.9 billion from the previous fiscal year end, to ¥25.5 billion.
Net cash provided by operating activities was ¥2.4 billion, compared with net cash provided by operating activi-ties of ¥6.5 billion in the previous fiscal year. Major inflows included income before income taxes of ¥6.7 billion, and depreciation and amortization of ¥1.9 billion. Major outflows included an increase in accounts receivable-trade of ¥3.4 billion, and income tax payments of ¥1.9 billion.
Net cash used in investing activities was ¥3.1 billion,
compared with net cash used in investing activities of ¥5.6 billion in the previous fiscal year. Major outflows included payments for purchase of tangible and intangible assets of ¥2.4 billion.
Net cash used in financing activities was ¥1.9 billion, compared with net cash provided financing activities of ¥915 million in the previous fiscal year. Major outflows included cash dividend payments of ¥1.9 billion.
Capital ExpendituresIn the fiscal year under review, the Company recorded capital expenditures totaling ¥2.0 billion. Principal expendi-tures included the following items.1. Installation of large machining centers to strengthen
production functions in China and Italy.2. Expansion of existing plants, and enhancement of auxilia-
ry functions at existing plants, to promote greater in-house manufacturing and production streamlining in Japan.
3. Consolidation and establishment of new offices to improve sales and service activities in China.
Research and DevelopmentR&D investments for the fiscal year totaled ¥1.1 billion. These funds went toward the development of new and core technologies, such as servo motor systems for presses, forming systems for handling lighter-weight products, and IoT-related technologies. Funds were also used to strength-en core product offerings through the development of products such as a hot-stamping servo press and a new general-purpose straightside servo press.
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Consolidated Segment InformationManagement’s Discussion and Analysis of Business Results and Financial Position
29 Annual Report 2017AIDA ENGINEERING, LTD. 30
Business Division:
Net sales
Press machines
Service
Others
Consolidated
Geographic Segment:
Net sales
Japan
Asia
Americas
Europe
Reconciliation
Consolidated
Operating income (loss)
Japan
Asia
Americas
Europe
Reconciliation
Consolidated
¥ 44,969
12,619
223
¥ 57,812
¥ 39,714
17,482
11,924
11,822
(23,131)
¥ 57,812
¥ 2,074
1,462
493
(49)
(219)
¥ 3,760
¥ 56,963
12,439
191
¥ 69,594
¥ 39,679
19,954
17,397
16,418
(23,855)
¥ 69,594
¥ 4,181
1,585
902
(717)
368
¥ 6,320
¥ 62,893
13,803
199
¥ 76,897
¥ 45,994
18,858
24,699
14,948
(27,604)
¥ 76,897
¥ 4,765
1,478
1,587
78
(45)
¥ 7,863
(13.9)
4.3
(28.0)
(10.6)
(6.5)
(27.3)
(1.3)
(16.9)
–
(10.6)
(29.1)
(34.5)
12.8
–
–
(17.7)
2014 2015 2016 vs 20172013
% changeMillions of yen
Net Sales
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Consolidated
Operating Income (Loss)
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Consolidated
¥ 12,064
14,638
14,569
16,541
¥ 57,812
¥ 854
1,215
989
702
¥ 3,760
¥ 14,960
16,913
17,930
19,789
¥ 69,594
¥ 1,522
1,603
1,667
1,526
¥ 6,320
¥ 17,168
16,994
21,950
20,782
¥ 76,897
¥ 1,815
1,814
2,535
1,696
¥ 7,863
(14.1)
(16.2)
(18.1)
6.6
(10.6)
(39.6)
(3.6)
(45.7)
31.8
(17.7)
2014 2015
¥ 17,857
19,611
19,393
18,668
¥ 75,529
¥ 2,097
2,135
2,221
1,582
¥ 8,037
2016 2016 vs 20172013
% changeMillions of yen
¥ 61,234
14,072
222
¥ 75,529
¥ 44,041
20,989
19,008
14,853
(23,363)
¥ 75,529
¥ 4,967
2,321
1,327
(490)
(88)
¥ 8,037
2016
¥ 15,338
16,429
15,881
19,897
¥ 67,547
¥ 1,266
2,059
1,205
2,086
¥ 6,617
2017
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Quarterly Information
¥ 52,711
14,674
160
¥ 67,547
¥ 41,176
15,259
18,752
12,337
(19,979)
¥ 67,547
¥ 3,521
1,519
1,496
(65)
144
¥ 6,617
6.0
2.0
4.0
0
-2.0
3.1
1.9 2.01.5
2013 2014 2015 2016
Free Cash Flow
(Billions of yen)
Capital Expenditures
Free Cash Flow/Capital Expenditures
2.7
4.63.8
-0.7
4.6
2017
30.0
20.0
10.0
0
26.0
29.9
22.2
2013 2014 2015 2016
(Billions of yen)
Cash and Cash Equivalents at the End of the Year
29.5
25.5
2017
120.0
80.0
40.0
0
105.1
82.191.8
67.259.6
52.9
2013 2014 2015 2016
(Billions of yen)
Total Assets Total Net Assets
Total Assets/Total Net Assets
100.6
2017
68.7
101.6
70.8
0.9
Orders, Sales, and Earnings
During the fiscal year ended March 31, 2017, the global economy made steady progress on the road to recovery as advanced economies experienced solid growth and emerg-ing economies showed signs of improvement thanks to factors that included recovery of resource prices. In Japan, economic performance reflected a modest recovery, helped by growing exports and improving consumer sentiment. Going forward, recovery of the global economy is expected to continue; however, uncertainty is persistent due to mount-ing protectionist pressures, growing geopolitical risks, and other factors.
In the forming-machinery industry, increases in orders were recorded at both the global level and in Japan, where orders rose 5.8% year on year, to ¥154.5 billion, based on data from the Japan Forming Machinery Association.
Under conditions such as those described above, the AIDA Group worked to implement its Mid-Term Manage-ment Plan covering the fiscal years ended March 31, 2015–2017. Guided by the vision statement “As a cutting-edge corporation that supports manufacturing, we will further develop and pursue environmentally friendly and energy-saving products,” we endeavored to strengthen our business infrastructure and increase our earnings by imple-menting the three basic policies in the plan. Specifically, “Put in place a solid corporate foundation that will enable even further business expansion,” “Establish AIDA as a top brand in the global marketplace,” and “Pursue new forming technologies.”
During the fiscal year ended March 31, 2017, we focused on strengthening human resources, adding produc-tion capacity, and enhancing other aspects of our business infrastructure, while also focusing attention on garnering
orders by globally linking the sales activities of Group companies.
Despite these efforts, order intake for the fiscal year declined 17.0%, compared to the previous fiscal year, to ¥62.6 billion, due to the loss of specific major orders and other factors. The order backlog fell 9.4%, to ¥46.9 billion. Net sales were ¥67.5 billion, down 10.6%, due to yen appre-ciation when booking overseas sales on a yen-conversion basis and also due to the effects of declining press machine sales to automotive-related industries in Japan and Asia. Given the combined impacts of lower sales and yen appreci-ation, we recorded operating income of ¥6.6 billion (down 17.7%), ordinary income of ¥6.7 billion (down 19.0%), and net income attributable to owners of parent of ¥4.9 billion (down 13.8%).
As for profit distribution, our basic policy is to maintain a stable dividend, with a consolidated dividend payout ratio of 30% or higher, while also providing for the stability of our business infrastructure and maintaining internal reserves for future growth investments. For the fiscal year ended March 31, 2017, we set the per-share dividend at ¥40, including an ordinary dividend of ¥30 and a commemorative dividend of ¥10 to mark the 100th anniversary of our founding, which we celebrated in March 2017.
Result by Business Divisions and Geographic Segments
Business Divisions
Press MachinesFactors such as a lack of orders for large tandem lines resulted in order intake of ¥48.7 billion, a 20.0% decline compared to the previous fiscal year. Net sales were ¥52.7 billion, down 13.9%, due to the effects of yen appreciation and lower sales to automotive-related manufacturers in Japan and Asia.
ServiceOrder intake ended the year at ¥13.5 billion, down 5.0%. Nevertheless, the modernization/retrofitting business and other segments were robust, and net sales were ¥14.6 billion, up 4.3%.
Others Order intake was ¥309 million, up 27.9%, while net sales ended the year at ¥160 million, down 28.0%.
Geographic Segments
JapanDue to lower sales of press machines to automotive-related industries, net sales were ¥41.1 billion, down 6.5% compared to the previous fiscal year, and segment profit, held back by this decline, totaled ¥3.5 billion, down 29.1%.
AsiaWeak sales to automotive-related industries resulted in net sales of ¥15.2 billion, down 27.3%, which, together with other factors, restricted segment profit to ¥1.5 billion, down 34.5%.
AmericasOn a local-currency basis, net sales rose compared to the prior fiscal year. On a yen-conversion basis, however, net sales fell 1.3%, to ¥18.7 billion. Segment profit, on the other hand, rose 12.8%, to ¥1.4 billion, as a result of reductions in cost of sales and selling, general and administrative expenses.
EuropeDue to yen appreciation and fewer sales of mid-size and large presses to automotive-related industries, net sales declined 16.9%, to ¥12.3 billion. However, lower cost of sales and selling, general and administrative expenses allowed for a lower segment loss of ¥65 million, a ¥425 million improvement from the previous fiscal year.
Financial PositionAs of March 31, 2017, assets increased by ¥1.0 billion compared to the previous fiscal year end, to ¥101.6 billion. Primary factors for this result include a decrease of ¥3.2 billion in cash on hand and at banks, and short-term securities; a ¥3.3 billion increase in notes and accounts receivable–trade, and electronically recorded monetary claims–operating; a ¥1.0 billion increase in investment securities resulting from a rise in share prices; and a ¥1.1 billion decrease in the insurance reserve fund.
Liabilities decreased ¥1.0 billion compared to the previous fiscal year end, to ¥30.8 billion. This decrease was primarily due to a decrease of ¥500 million in income taxes after the payment of taxes and other adjustments.
Net assets increased ¥2.0 billion compared to the previous fiscal year end, to ¥70.8 billion. This increase was primarily due to a ¥3.0 billion increase in retained earnings and a ¥1.5 billion decrease in foreign currency translation adjustments. As a result, our shareholders’ equity ratio at the end of the consolidated fiscal year was 69.5%.
Cash FlowCash and cash equivalents as of March 31, 2017 decreased ¥3.9 billion from the previous fiscal year end, to ¥25.5 billion.
Net cash provided by operating activities was ¥2.4 billion, compared with net cash provided by operating activi-ties of ¥6.5 billion in the previous fiscal year. Major inflows included income before income taxes of ¥6.7 billion, and depreciation and amortization of ¥1.9 billion. Major outflows included an increase in accounts receivable-trade of ¥3.4 billion, and income tax payments of ¥1.9 billion.
Net cash used in investing activities was ¥3.1 billion,
compared with net cash used in investing activities of ¥5.6 billion in the previous fiscal year. Major outflows included payments for purchase of tangible and intangible assets of ¥2.4 billion.
Net cash used in financing activities was ¥1.9 billion, compared with net cash provided financing activities of ¥915 million in the previous fiscal year. Major outflows included cash dividend payments of ¥1.9 billion.
Capital ExpendituresIn the fiscal year under review, the Company recorded capital expenditures totaling ¥2.0 billion. Principal expendi-tures included the following items.1. Installation of large machining centers to strengthen
production functions in China and Italy.2. Expansion of existing plants, and enhancement of auxilia-
ry functions at existing plants, to promote greater in-house manufacturing and production streamlining in Japan.
3. Consolidation and establishment of new offices to improve sales and service activities in China.
Research and DevelopmentR&D investments for the fiscal year totaled ¥1.1 billion. These funds went toward the development of new and core technologies, such as servo motor systems for presses, forming systems for handling lighter-weight products, and IoT-related technologies. Funds were also used to strength-en core product offerings through the development of products such as a hot-stamping servo press and a new general-purpose straightside servo press.
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesYears ended March 31
Consolidated Segment InformationManagement’s Discussion and Analysis of Business Results and Financial Position
31 Annual Report 2017AIDA ENGINEERING, LTD. 32
The accompanying notes are an integral part of these financial statements.
¥ 22,529
20,105
397
7,200
13,430
1,034
1,049
1,348
1,040
953
(186)
68,903
21,650
(14,061)
7,589
14,096
(7,492)
6,604
5,062
779
2,798
(2,177)
620
20,656
984
5,802
3,390
435
155
308
(26)
10,064
31,705
¥ 100,609
$ 218,284
207,076
5,862
17,825
125,010
8,886
7,640
11,377
13,349
9,977
(1,804)
623,485
193,906
(126,926)
66,979
131,781
(73,769)
58,011
45,036
10,259
25,500
(20,266)
5,233
185,520
7,533
60,825
19,538
5,618
2,209
1,743
(205)
89,730
282,784
$ 906,270
Assets 2016 2017
Thousands ofU.S. dollars (Note 3)
Current liabilities
Accounts payable–trade
Electronically recorded monetary obligations – operating
Short-term loans payable (Note 9)
Accounts payable – other
Income taxes payable
Accrued expenses
Advances received
Accrued warranty costs
Accrued bonuses for employees
Accrued bonuses for directors
Provision for loss on orders received (Note 5)
Special suspense account for reduction entry
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term loans payable (Note 9)
Long-term accounts payable – other
Deferred taxes liabilities (Note 14)
Accrued stock payments for employees
Net defined benefit liabilities (Note 10)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Authorized: 188,149,000 shares in 2017 and 2016
Issued: 73,647,321 shares in 2017 and 2016
Additional paid-in capital
Retained earnings
Treasury stock (Note 11)
(11,955,096 shares in 2017)
(11,973,276 shares in 2016)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Retirement benefit plan adjustments
Total accumulated other comprehensive income
Stock options (Note 20)
Total net assets
Total liabilities and net assets
¥ 6,353
2,457
2,970
854
708
1,072
8,085
700
1,040
53
166
–
1,055
25,518
1,500
581
2,543
278
108
319
5,330
30,848
7,831
12,420
51,817
(5,158)
66,909
3,761
(75)
(301)
390
3,774
151
70,834
¥ 101,683
2016
$ 56,630
21,900
26,475
7,611
6,312
9,554
72,061
6,240
9,270
479
1,487
–
9,409
227,433
13,368
5,180
22,667
2,478
968
2,845
47,509
274,943
69,795
110,696
461,827
(45,980)
596,338
33,524
(676)
(2,687)
3,478
33,638
1,349
631,326
$ 906,270
Liabilities and net assets
¥ 6,882
1,828
3,163
1,070
1,235
1,431
7,738
1,081
1,117
60
161
126
1,041
26,940
1,500
496
2,261
238
99
314
4,911
31,851
7,831
12,416
48,783
(5,166)
63,864
3,043
159
1,211
333
4,748
145
68,758
¥ 100,609
2017
Thousands ofU.S. dollars (Note 3)Millions of yen
¥ 24,491
23,233
657
2,000
14,026
997
857
1,276
1,497
1,119
(202)
69,955
21,756
(14,241)
7,515
14,785
(8,276)
6,508
5,053
1,151
2,861
(2,273)
587
20,815
845
6,824
2,192
630
247
195
(23)
10,067
31,728
¥ 101,683
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesAs of March 31, 2017 and 2016
Consolidated Balance Sheets
Millions of yen
2017
Current assets
Cash on hand and at banks (Note 4)
Notes and accounts receivable – trade
Electronically recorded monetary claims – operating
Short-term securities (Notes 4 and 7)
Inventories (Note 5)
Advance payments – trade
Deferred tax assets (Note 14)
Accounts receivable – other
Consumption taxes receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Land
Construction in progress
Other fixed assets
Accumulated depreciation
Other fixed assets, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities (Note 7)
Insurance reserve fund
Net defined benefit assets (Note 10)
Deferred taxes assets (Note 14)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
The accompanying notes are an integral part of these financial statements.
31 Annual Report 2017AIDA ENGINEERING, LTD. 32
The accompanying notes are an integral part of these financial statements.
¥ 22,529
20,105
397
7,200
13,430
1,034
1,049
1,348
1,040
953
(186)
68,903
21,650
(14,061)
7,589
14,096
(7,492)
6,604
5,062
779
2,798
(2,177)
620
20,656
984
5,802
3,390
435
155
308
(26)
10,064
31,705
¥ 100,609
$ 218,284
207,076
5,862
17,825
125,010
8,886
7,640
11,377
13,349
9,977
(1,804)
623,485
193,906
(126,926)
66,979
131,781
(73,769)
58,011
45,036
10,259
25,500
(20,266)
5,233
185,520
7,533
60,825
19,538
5,618
2,209
1,743
(205)
89,730
282,784
$ 906,270
Assets 2016 2017
Thousands ofU.S. dollars (Note 3)
Current liabilities
Accounts payable–trade
Electronically recorded monetary obligations – operating
Short-term loans payable (Note 9)
Accounts payable – other
Income taxes payable
Accrued expenses
Advances received
Accrued warranty costs
Accrued bonuses for employees
Accrued bonuses for directors
Provision for loss on orders received (Note 5)
Special suspense account for reduction entry
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term loans payable (Note 9)
Long-term accounts payable – other
Deferred taxes liabilities (Note 14)
Accrued stock payments for employees
Net defined benefit liabilities (Note 10)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Authorized: 188,149,000 shares in 2017 and 2016
Issued: 73,647,321 shares in 2017 and 2016
Additional paid-in capital
Retained earnings
Treasury stock (Note 11)
(11,955,096 shares in 2017)
(11,973,276 shares in 2016)
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains on other securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Retirement benefit plan adjustments
Total accumulated other comprehensive income
Stock options (Note 20)
Total net assets
Total liabilities and net assets
¥ 6,353
2,457
2,970
854
708
1,072
8,085
700
1,040
53
166
–
1,055
25,518
1,500
581
2,543
278
108
319
5,330
30,848
7,831
12,420
51,817
(5,158)
66,909
3,761
(75)
(301)
390
3,774
151
70,834
¥ 101,683
2016
$ 56,630
21,900
26,475
7,611
6,312
9,554
72,061
6,240
9,270
479
1,487
–
9,409
227,433
13,368
5,180
22,667
2,478
968
2,845
47,509
274,943
69,795
110,696
461,827
(45,980)
596,338
33,524
(676)
(2,687)
3,478
33,638
1,349
631,326
$ 906,270
Liabilities and net assets
¥ 6,882
1,828
3,163
1,070
1,235
1,431
7,738
1,081
1,117
60
161
126
1,041
26,940
1,500
496
2,261
238
99
314
4,911
31,851
7,831
12,416
48,783
(5,166)
63,864
3,043
159
1,211
333
4,748
145
68,758
¥ 100,609
2017
Thousands ofU.S. dollars (Note 3)Millions of yen
¥ 24,491
23,233
657
2,000
14,026
997
857
1,276
1,497
1,119
(202)
69,955
21,756
(14,241)
7,515
14,785
(8,276)
6,508
5,053
1,151
2,861
(2,273)
587
20,815
845
6,824
2,192
630
247
195
(23)
10,067
31,728
¥ 101,683
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesAs of March 31, 2017 and 2016
Consolidated Balance Sheets
Millions of yen
2017
Current assets
Cash on hand and at banks (Note 4)
Notes and accounts receivable – trade
Electronically recorded monetary claims – operating
Short-term securities (Notes 4 and 7)
Inventories (Note 5)
Advance payments – trade
Deferred tax assets (Note 14)
Accounts receivable – other
Consumption taxes receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Land
Construction in progress
Other fixed assets
Accumulated depreciation
Other fixed assets, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities (Note 7)
Insurance reserve fund
Net defined benefit assets (Note 10)
Deferred taxes assets (Note 14)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
The accompanying notes are an integral part of these financial statements.
33 AIDA ENGINEERING, LTD. Annual Report 2017 34
Net sales
Cost of sales (Notes 2(12), 5 and 13)
Gross profit
Selling, general and administrative expenses (Notes 12, 13 and 20)
Operating income
Interest income
Dividend income
Foreign exchange gain
Insurance premiums refunded cancellation
Gain from redemption at maturity of endowment insurance
Other non-operating income
Total non-operating income
Interest expenses
Foreign exchange loss
Taxes and dues
Restructuring charges
Other non-operating expenses
Total non-operating expenses
Ordinary income
Gain on sales of fixed assets
Other extraordinary gain
Total extraordinary gain
Loss on sales of fixed assets
Loss on disposal of fixed assets
Other extraordinary loss
Total extraordinary loss
Income before income taxes
Current taxes
Deferred taxes
Income taxes (Note 14)
Net income
Net income attributable to owners of parent
¥ 75,529
57,544
17,985
9,947
8,037
86
119
192
8
28
82
517
48
–
30
–
110
189
8,364
10
–
10
3
37
5
46
8,329
2,213
332
2,546
5,782
¥ 5,782
$ 602,025
461,336
140,689
81,713
58,975
610
1,029
–
1,076
543
1,153
4,414
366
1,158
–
673
802
3,000
60,389
44
7
51
2
236
–
238
60,202
12,669
3,097
15,767
44,434
$ 44,434
¥ 93.78
93.54
30.00
$ 0.72
0.72
0.36
2016 2017
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
Net income
Other comprehensive income (Note 18)
Net unrealized gains (losses) on other securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Retirement benefit plan adjustments
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
¥ 5,782
(12)
371
(2,543)
(163)
(2,348)
3,434
¥ 3,434
$ 44,434
6,397
(2,102)
(13,484)
507
(8,682)
35,752
$ 35,752
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
U.S. dollarsYen
Net income - Basic (Note 17)
- Diluted (Note 17)
Cash dividends (Note 21)
Per share
¥ 67,547
51,761
15,785
9,168
6,617
68
115
–
120
60
129
495
41
129
–
75
90
336
6,775
4
0
5
0
26
–
26
6,754
1,421
347
1,769
4,985
¥ 4,985
¥ 80.82
80.65
40.00
2017
2017
¥ 4,985
717
(235)
(1,512)
56
(974)
4,011
¥ 4,011
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016
Consolidated Statements of Income
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016
Consolidated Statements of Comprehensive Income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
33 AIDA ENGINEERING, LTD. Annual Report 2017 34
Net sales
Cost of sales (Notes 2(12), 5 and 13)
Gross profit
Selling, general and administrative expenses (Notes 12, 13 and 20)
Operating income
Interest income
Dividend income
Foreign exchange gain
Insurance premiums refunded cancellation
Gain from redemption at maturity of endowment insurance
Other non-operating income
Total non-operating income
Interest expenses
Foreign exchange loss
Taxes and dues
Restructuring charges
Other non-operating expenses
Total non-operating expenses
Ordinary income
Gain on sales of fixed assets
Other extraordinary gain
Total extraordinary gain
Loss on sales of fixed assets
Loss on disposal of fixed assets
Other extraordinary loss
Total extraordinary loss
Income before income taxes
Current taxes
Deferred taxes
Income taxes (Note 14)
Net income
Net income attributable to owners of parent
¥ 75,529
57,544
17,985
9,947
8,037
86
119
192
8
28
82
517
48
–
30
–
110
189
8,364
10
–
10
3
37
5
46
8,329
2,213
332
2,546
5,782
¥ 5,782
$ 602,025
461,336
140,689
81,713
58,975
610
1,029
–
1,076
543
1,153
4,414
366
1,158
–
673
802
3,000
60,389
44
7
51
2
236
–
238
60,202
12,669
3,097
15,767
44,434
$ 44,434
¥ 93.78
93.54
30.00
$ 0.72
0.72
0.36
2016 2017
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
Net income
Other comprehensive income (Note 18)
Net unrealized gains (losses) on other securities
Deferred hedge gains (losses)
Foreign currency translation adjustments
Retirement benefit plan adjustments
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
¥ 5,782
(12)
371
(2,543)
(163)
(2,348)
3,434
¥ 3,434
$ 44,434
6,397
(2,102)
(13,484)
507
(8,682)
35,752
$ 35,752
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
U.S. dollarsYen
Net income - Basic (Note 17)
- Diluted (Note 17)
Cash dividends (Note 21)
Per share
¥ 67,547
51,761
15,785
9,168
6,617
68
115
–
120
60
129
495
41
129
–
75
90
336
6,775
4
0
5
0
26
–
26
6,754
1,421
347
1,769
4,985
¥ 4,985
¥ 80.82
80.65
40.00
2017
2017
¥ 4,985
717
(235)
(1,512)
56
(974)
4,011
¥ 4,011
2017
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016
Consolidated Statements of Income
AIDA ENGINEERING, LTD. and Consolidated SubsidiariesFor the years ended March 31, 2017 and 2016
Consolidated Statements of Comprehensive Income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
35 AIDA ENGINEERING, LTD. Annual Report 2017 36
Income before income taxes
Adjustments for:
Depreciation and amortization
(Gain) loss on sales of fixed assets
Loss on disposal of fixed assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses for employees, net
Increase (decrease) in accrued bonuses for directors, net
Increase (decrease) in accrued warranty costs, net
Increase (decrease) in net defined benefit liabilities
(Increase) decrease in net defined benefit assets
Increase (decrease) in accrued stock payments, net
Increase (decrease) in provision for loss on orders received, net
Interest and dividend income
Interest expenses
(Increase) decrease in accounts receivable – trade
(Increase) decrease in inventories
Increase (decrease) in accounts payable – trade
(Increase) decrease in other assets
Increase (decrease) in other liabilities
Other, net
Sub-total
Interest and dividend income received
Interest expenses paid
Income taxes paid
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
¥ 8,329
1,995
(7)
37
126
40
2
(372)
(1)
102
37
83
(206)
48
(1,133)
668
(2,744)
666
940
91
8,706
204
(50)
(2,264)
6,596
(5,384)
45
(109)
(102)
(813)
708
1
(5,655)
$ 60,202
17,484
(41)
236
144
(624)
(63)
(3,119)
129
(657)
349
80
(1,639)
366
(30,940)
(7,286)
5,190
9,431
(10,514)
(818)
37,909
1,587
(369)
(17,730)
21,396
(21,107)
103
(562)
–
(13,006)
6,767
7
(27,798)
Cash �ows from operating activities:
Cash �ows from �nancing activities:
Cash �ows from investing activities:
2016 2017
2016 2017
2,871
(9)
0
(1)
(1,945)
915
(2,291)
(434)
29,958
¥ 29,524
–
(31)
0
(8)
(17,380)
(17,420)
(11,394)
(35,217)
263,138
$ 227,921
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
Millions of yen
Thousands ofU.S. dollars (Note 3)Millions of yen
Cash dividends
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
Balance at March 31 and April 1, 2016
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
Balance at March 31, 2017
73,647
-
-
-
-
-
73,647
-
-
-
-
-
73,647
7,831
-
-
-
-
-
7,831
-
-
-
-
-
¥7,831
12,415
-
-
-
1
-
12,416
-
-
-
3
-
¥12,420
44,951
(1,950)
5,782
-
-
-
48,783
(1,951)
4,985
-
-
-
¥51,817
(5,188)
-
-
(1)
24
-
(5,166)
-
-
(0)
8
-
¥(5,158)
60,008
(1,950)
5,782
(1)
25
-
63,864
(1,951)
4,985
(0)
11
-
¥66,909
3,056
-
-
-
-
(12)
3,043
-
-
-
-
717
¥3,761
(211)
-
-
-
-
371
159
-
-
-
-
(235)
¥(75)
3,754
-
-
-
-
(2,543)
1,211
-
-
-
-
(1,512)
¥(301)
496
-
-
-
-
(163)
333
-
-
-
-
56
¥390
7,096
-
-
-
-
(2,348)
4,748
-
-
-
-
(974)
¥3,774
149
-
-
-
-
(4)
145
-
-
-
-
6
¥151
67,254
(1,950)
5,782
(1)
25
(2,352)
68,758
(1,951)
4,985
(0)
11
(968)
¥70,834
Millions of yen
Thousands of U.S. dollars (Note 3)
Number ofshares ofcommon
stockissued
(Thousands)
Net increase (decrease) in short-term loans
Payments for finance lease obligations
Proceeds from sales of treasury stock
Payments for purchase of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year (Note 4)
Net cash provided by operating activities
Net cash used in investing activities
Balance at April 1, 2015
¥ 6,754
1,961
(4)
26
16
(70)
(7)
(350)
14
(73)
39
9
(184)
41
(3,471)
(817)
582
1,058
(1,179)
(91)
4,253
178
(41)
(1,989)
2,400
(2,368)
11
(63)
–
(1,459)
759
0
(3,118)
2017
2017
–
(3)
0
(0)
(1,950)
(1,954)
(1,278)
(3,951)
29,524
¥ 25,572
2017
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries For the years ended March 31, 2017 and 2016
Consolidated Statements of Changes in Net Assets
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries For the years ended March 31, 2017 and 2016
Consolidated Statements of Cash Flows
Commonstock
Additionalpaid-incapital
Retainedearnings
Treasurystock
Totalshare-
holders’equity
Netunrealized
gains(losses) on othersecurities
Deferred hedgegains
(losses)
Foreigncurrency
translationadjustments
Retire-ment benefitplans
adjustments
Totalaccumula-ted other
comprehen-sive income
(loss)
Stockoptions
Totalnet assets
Number ofshares ofcommon
stockissued
(Thousands)
Commonstock
Additionalpaid-incapital
Retainedearnings
Treasurystock
Netunrealized
gains(losses) on othersecurities
Foreigncurrency
translationadjustments
Retire-ment benefitplans
adjustments
Stockoptions
Totalnet assets
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
73,647
-
-
-
-
-
73,647
69,795
-
-
-
-
-
$ 69,795
110,665
-
-
-
30
-
$ 110,696
434,789
(17,396)
44,434
-
-
-
$ 461,827
(46,047)
-
-
(8)
76
-
$ (45,980)
569,202
(17,396)
44,434
(8)
106
-
$ 596,338
27,127
-
-
-
-
6,397
$ 33,524
1,426
-
-
-
-
(2,102)
$ (676)
10,797
-
-
-
-
(13,484)
$ (2,687)
2,970
-
-
-
-
507
$ 3,478
42,321
-
-
-
-
(8,682)
$ 33,638
1,295
-
-
-
-
54
$ 1,349
612,819
(17,396)
44,434
(8)
106
(8,628)
$ 631,326
Balance at April 1, 2016
Balance at March 31, 2017
Totalaccumula-ted other
comprehen-sive income
(loss) Thousands ofU.S. dollars (Note 3)
The accompanying notes are integral part of these financial statements.
Totalshare-
holders’equity
Deferred hedgegains
(losses)
The accompanying notes are an integral part of these financial statements.
35 AIDA ENGINEERING, LTD. Annual Report 2017 36
Income before income taxes
Adjustments for:
Depreciation and amortization
(Gain) loss on sales of fixed assets
Loss on disposal of fixed assets
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses for employees, net
Increase (decrease) in accrued bonuses for directors, net
Increase (decrease) in accrued warranty costs, net
Increase (decrease) in net defined benefit liabilities
(Increase) decrease in net defined benefit assets
Increase (decrease) in accrued stock payments, net
Increase (decrease) in provision for loss on orders received, net
Interest and dividend income
Interest expenses
(Increase) decrease in accounts receivable – trade
(Increase) decrease in inventories
Increase (decrease) in accounts payable – trade
(Increase) decrease in other assets
Increase (decrease) in other liabilities
Other, net
Sub-total
Interest and dividend income received
Interest expenses paid
Income taxes paid
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of investment securities
Payments into time deposits
Proceeds from withdrawal of time deposits
Other, net
¥ 8,329
1,995
(7)
37
126
40
2
(372)
(1)
102
37
83
(206)
48
(1,133)
668
(2,744)
666
940
91
8,706
204
(50)
(2,264)
6,596
(5,384)
45
(109)
(102)
(813)
708
1
(5,655)
$ 60,202
17,484
(41)
236
144
(624)
(63)
(3,119)
129
(657)
349
80
(1,639)
366
(30,940)
(7,286)
5,190
9,431
(10,514)
(818)
37,909
1,587
(369)
(17,730)
21,396
(21,107)
103
(562)
–
(13,006)
6,767
7
(27,798)
Cash �ows from operating activities:
Cash �ows from �nancing activities:
Cash �ows from investing activities:
2016 2017
2016 2017
2,871
(9)
0
(1)
(1,945)
915
(2,291)
(434)
29,958
¥ 29,524
–
(31)
0
(8)
(17,380)
(17,420)
(11,394)
(35,217)
263,138
$ 227,921
2016 2017
Thousands ofU.S. dollars (Note 3)Millions of yen
Millions of yen
Thousands ofU.S. dollars (Note 3)Millions of yen
Cash dividends
Net income attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
Balance at March 31 and April 1, 2016
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
Balance at March 31, 2017
73,647
-
-
-
-
-
73,647
-
-
-
-
-
73,647
7,831
-
-
-
-
-
7,831
-
-
-
-
-
¥7,831
12,415
-
-
-
1
-
12,416
-
-
-
3
-
¥12,420
44,951
(1,950)
5,782
-
-
-
48,783
(1,951)
4,985
-
-
-
¥51,817
(5,188)
-
-
(1)
24
-
(5,166)
-
-
(0)
8
-
¥(5,158)
60,008
(1,950)
5,782
(1)
25
-
63,864
(1,951)
4,985
(0)
11
-
¥66,909
3,056
-
-
-
-
(12)
3,043
-
-
-
-
717
¥3,761
(211)
-
-
-
-
371
159
-
-
-
-
(235)
¥(75)
3,754
-
-
-
-
(2,543)
1,211
-
-
-
-
(1,512)
¥(301)
496
-
-
-
-
(163)
333
-
-
-
-
56
¥390
7,096
-
-
-
-
(2,348)
4,748
-
-
-
-
(974)
¥3,774
149
-
-
-
-
(4)
145
-
-
-
-
6
¥151
67,254
(1,950)
5,782
(1)
25
(2,352)
68,758
(1,951)
4,985
(0)
11
(968)
¥70,834
Millions of yen
Thousands of U.S. dollars (Note 3)
Number ofshares ofcommon
stockissued
(Thousands)
Net increase (decrease) in short-term loans
Payments for finance lease obligations
Proceeds from sales of treasury stock
Payments for purchase of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year (Note 4)
Net cash provided by operating activities
Net cash used in investing activities
Balance at April 1, 2015
¥ 6,754
1,961
(4)
26
16
(70)
(7)
(350)
14
(73)
39
9
(184)
41
(3,471)
(817)
582
1,058
(1,179)
(91)
4,253
178
(41)
(1,989)
2,400
(2,368)
11
(63)
–
(1,459)
759
0
(3,118)
2017
2017
–
(3)
0
(0)
(1,950)
(1,954)
(1,278)
(3,951)
29,524
¥ 25,572
2017
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries For the years ended March 31, 2017 and 2016
Consolidated Statements of Changes in Net Assets
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries For the years ended March 31, 2017 and 2016
Consolidated Statements of Cash Flows
Commonstock
Additionalpaid-incapital
Retainedearnings
Treasurystock
Totalshare-
holders’equity
Netunrealized
gains(losses) on othersecurities
Deferred hedgegains
(losses)
Foreigncurrency
translationadjustments
Retire-ment benefitplans
adjustments
Totalaccumula-ted other
comprehen-sive income
(loss)
Stockoptions
Totalnet assets
Number ofshares ofcommon
stockissued
(Thousands)
Commonstock
Additionalpaid-incapital
Retainedearnings
Treasurystock
Netunrealized
gains(losses) on othersecurities
Foreigncurrency
translationadjustments
Retire-ment benefitplans
adjustments
Stockoptions
Totalnet assets
Cash dividends
Net income attributable to owners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity during the year
73,647
-
-
-
-
-
73,647
69,795
-
-
-
-
-
$ 69,795
110,665
-
-
-
30
-
$ 110,696
434,789
(17,396)
44,434
-
-
-
$ 461,827
(46,047)
-
-
(8)
76
-
$ (45,980)
569,202
(17,396)
44,434
(8)
106
-
$ 596,338
27,127
-
-
-
-
6,397
$ 33,524
1,426
-
-
-
-
(2,102)
$ (676)
10,797
-
-
-
-
(13,484)
$ (2,687)
2,970
-
-
-
-
507
$ 3,478
42,321
-
-
-
-
(8,682)
$ 33,638
1,295
-
-
-
-
54
$ 1,349
612,819
(17,396)
44,434
(8)
106
(8,628)
$ 631,326
Balance at April 1, 2016
Balance at March 31, 2017
Totalaccumula-ted other
comprehen-sive income
(loss) Thousands ofU.S. dollars (Note 3)
The accompanying notes are integral part of these financial statements.
Totalshare-
holders’equity
Deferred hedgegains
(losses)
The accompanying notes are an integral part of these financial statements.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
37
AIDA ENGINEERING, LTD. and Consolidated Subsidiaries
1 BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements of AIDA
ENGINEERING, LTD. (“AIDA”) and its consolidated subsidiaries
(collectively, “the Companies”) have been prepared based on the
financial statements of AIDA and its consolidated subsidiaries and
the consolidated financial statements filed with the Director of the
Kanto Finance Bureau in Japan in accordance with the Financial
Instruments and Exchange Act.
The accounting records of the Companies are maintained
in accordance with the provisions set forth in the Financial Instru-
ments and Exchange Act of Japan, and in conformity with account-
ing principles and practices generally accepted in Japan, which
are different in certain respects as to application and disclosure
requirements from International Financial Reporting Standards
(IFRS).
Items presented in the consolidated financial statements filed
with the Director of the Kanto Finance Bureau in Japan have been
reclassified and / or recapitulated and certain notes are added for
the convenience of readers outside Japan.
Certain amounts in the prior year’s financial statements have
been reclassified to conform to the current year’s presentation.
The amounts presented in millions of yen are truncated after
millions and thousands of U.S. dollars after thousands.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(1) Principles of consolidation
All subsidiaries have been consolidated (24 subsidiaries in 2017 and
23 subsidiaries in 2016). Significant consolidated subsidiaries as of
March 31, 2017 are as follows:
• Domestic subsidiaries:
ACCESS, LTD.
• Overseas subsidiaries:
ASIA
AIDA GREATER ASIA PTE. LTD.
AIDA ENGINEERING (M) SDN. BHD.
AIDA HONG KONG, LTD.
AIDA ENGINEERING CHINA CO., LTD.
AIDA PRESS MACHINERY SYSTEMS CO., LTD.
AMERICAS
AIDA AMERICA CORP.
EUROPE
AIDA S.r.l.
(Remarks)
All consolidated subsidiaries are exclusively owned by AIDA or its
subsidiaries.
All significant inter-company transactions, balances and unre-
alized inter-company profits are eliminated on consolidation.
For consolidation purposes, the financial statements of those
subsidiaries whose fiscal year end date is December 31 have been
included in consolidation on the basis of a full year provisional clos-
ing of accounts as of March 31.
(2) Cash and cash equivalents
Cash and cash equivalents in the consolidated statements of cash
flows are composed of cash on hand, bank deposits able to be
withdrawn on demand and short-term highly liquid investments with
an original maturity of three months or less and which represent a
minor risk of fluctuations in value.
(3) Inventories
Finished goods and work in process are principally stated at the
lower of cost and net realizable value determined by using the spe-
cific identification method. Raw materials are principally stated at
the lower of cost and net realizable value determined by using the
first-in first-out (FIFO) method.
(4) Financial instruments
Japanese accounting standards for financial instruments, which
cover accounting treatments for short-term securities, investment
securities, derivative financial instruments and hedge accounting,
have been applied.
(a) Investment securities
Other securities with fair market value are reported at such fair
market value at the balance sheet date, and the related unreal-
ized gains or losses, net of applicable tax effects thereon, are
reported in a separate component of net assets. Cost of securi-
ties sold is determined by the moving average method.
Other securities without fair market value are stated at cost
determined by the moving average method.
(b) Derivative financial instruments
All derivatives are recognized as either assets or liabilities at fair
value, and changes in fair value are charged to current income
for the period in which they arise, except for derivatives that
are designated as “hedging instruments” (see below (c) Hedge
accounting).
(c) Hedge accounting
Gains or losses arising from changes in fair value of the deriv-
atives designated as “hedging instruments” are deferred as
deferred hedge gains and losses in net assets and charged to
income in the period during which the gains and losses on the
underlying hedged transactions are recognized.
The derivatives designated as hedging instruments by the
Companies are forward foreign exchange contracts.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
38
(5) Property, plant and equipment
Property, plant and equipment, including significant renewals and
improvements, are carried at cost. Maintenance and repairs includ-
ing minor renewals and improvements are charged to consolidated
statement of income as incurred. Depreciation of property, plant
and equipment in the Companies is mainly calculated by apply-
ing the straight-line method, over the estimated useful lives of the
respective assets as follows:
Buildings and structures: 2 to 50 years
Machinery and vehicles: 2 to 9 years
(6) Intangible assets
Intangible assets including capitalized software costs are carried
at cost less accumulated amortization. Capitalized software costs
are amortized under the straight-line method over the estimated
useful life of 5 years.
(7) Leases
Non-cancellable lease transactions that transfer substantially all
risks and rewards associated with the ownership of assets are
accounted for as finance leases. The finance leases transactions
are capitalized to recognize leased assets for financial accounting
purpose. All other lease transactions are accounted for as operat-
ing leases and relating payments are charged to the consolidated
statements of income as incurred.
Leased assets under finance lease transactions that do not
transfer the ownership to the lessee are depreciated using the
straight-line method on the assumption that the useful life is equal
to the lease term and the residual value is equal to zero. For leases
with a residual value guarantee, the contracted residual value is
considered to be the residual value.
(8) Allowance for doubtful accounts
The allowance for doubtful accounts is provided based on the esti-
mated uncollectible amounts for doubtful receivables in addition to
the general provision for normal receivables computed by applying
the rate computed based on past credit loss experience.
(9) Accrued warranty costs
Accrued warranty costs are provided in the amount of estimated
future warranty costs to be incurred in the period covered by war-
ranty contract.
(10) Accrued bonuses for employees
Accrued bonuses for employees are provided based on the estimat-
ed amounts expected to be paid to employees after the year end.
(11) Accrued bonuses for directors
Accrued bonuses for directors are provided based on the estimated
amounts expected to be paid to directors after the year end.
(12) Provision for loss on orders received
Provision for loss on orders received is provided based on the esti-
mated future losses related to order contracts at the end of the
fiscal year.
Provision for loss on orders received included in cost of sales
amounted to ¥223 million (U.S.$1,992 thousand) and ¥406 million
for the years ended March 31, 2017 and 2016, respectively.
(13) Accrued stock payments for employees
Accrued stock payments are provided in the amount of estimated
future payments of treasury stock or money for employees based
on predetermined regulations for awarding stock.
(14) Accounting method for retirement benefits
(a) Attribution of expected retirement benefit payments
In calculating retirement benefit obligations, the benefit formula
method is used to allocate the expected retirement benefit pay-
ments up to the fiscal year ended March 31.
(b) Actuarial gains and losses and prior service cost
Actuarial gains and losses are being amortized by the straight-
line method over certain periods (principally 10 years, but 5 years
for certain domestic subsidiaries), which are within the average
remaining years of service of the employees at the time the
amounts are recognized in each fiscal year, starting from the
year following the respective fiscal year of occurrence.
Prior service cost is expensed in the period of occurrence.
(15) Research and development costs
Research and development costs are expensed as incurred.
(16) Recognition of material sales and cost of sales
The percentage of completion method (cost-comparison method
using primarily estimates of construction progress) is applied for the
construction contracts of which the percentage of completion can
be reliably estimated. The completed-contract method is applied
for other construction contracts.
(17) Consolidated taxation system
AIDA and its domestic subsidiaries adopt the consolidated taxation
system.
(18) Additional information
Employee stock ownership plan (ESOP) trust
Since December 2010, AIDA and its domestic subsidiaries have
operated an ESOP trust as an employee incentive plan with the
aim of improving long-term corporate value.
(a) Transaction summary
In this transaction, employees are granted points as a form of
bonus payment, and they will receive AIDA’s shares depend-
ing on the number of accumulated points when they retire.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
39
(b) Company’s own stock in the trust
The Company’s own stock in the trust is recorded in treasury
stock under net assets based on the book value in the trust.
The book value and the number of shares of treasury stock
as of March 31, 2017 are ¥971 million (U.S.$ 8,656 thousand)
and 3,384,000 shares, respectively.
Adoption of the “Implementation Guidance on Recoverability of
Deferred Tax Assets”
The Companies have adopted the “Implementation Guidance on
Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26)
from the fiscal year ended March 31, 2017.
3 U.S. DOLLAR AMOUNTS
The U.S. dollar amounts stated in the consolidated financial state-
ments are included solely for convenience of readers outside Japan.
The rate of ¥112.20 = U.S.$1, the approximate rate of exchange as
of March 31, 2017, has been used for the purpose of such transla-
tion. Those translations should not be construed as representations
that the Japanese yen amounts actually represent, or have been or
could be converted into U.S. dollars at that rate.
4 SUPPLEMENTARY CASH FLOW INFORMATION: CASH AND CASH EQUIVALENTS
Cash and cash equivalents as of March 31, 2017 and 2016 are reconciled to cash on hand and at banks reported in the consolidated balance
sheets as follows:
Millions of yenThousands of U.S. dollars
2017 2016 2017
Cash on hand and at banks ¥ 24,491 ¥ 22,529 $ 218,284
Add: Securities with maturities of three months or less 2,000 7,200 17,825
Less: Time deposits with maturities of more than three months (918) (205) (8,188)
Cash and cash equivalents ¥ 25,572 ¥ 29,524 $ 227,921
5 INVENTORIES
“Inventories” on the consolidated balance sheets as of March 31, 2017 and 2016 were as follows:
Millions of yenThousands of U.S. dollars
2017 2016 2017
Finished goods ¥ 1,647 ¥ 1,473 $ 14,682
Work in process 9,416 9,332 83,925
Raw materials 2,962 2,624 26,403
Inventories ¥ 14,026 ¥ 13,430 $ 125,010
Inventories as of March 31, 2017 and 2016 were offset by a corresponding provision for loss on orders received. A breakdown of the offset
amounts as of March 31, 2017 and 2016 is as follows:
Millions of yenThousands of U.S. dollars
2017 2016 2017
Work in process ¥ 21 ¥ 58 $ 190
Total ¥ 21 ¥ 58 $ 190
Gains recognized and credited to cost of sales as a result of reversal of loss on devaluation of inventories for the year ended March 31, 2017
were ¥122 million (U.S. $1,088 thousand).
Losses recognized and charged to cost of sales as a result of devaluation of inventories for the year ended March 31, 2016 were ¥112
million.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
40
6 FINANCIAL INSTRUMENTS
Status of financial instruments
(1) Policy for financial instruments
Fund management is restricted to short-term deposits at banks;
financing activities of the Companies are mainly through bank
loans. Derivatives are not used for speculative transactions, but
are used in order to hedge the risks described in a later section.
(2) Types of financial instruments and related risk
Operating receivables (notes and accounts receivable – trade,
electronically recorded monetary claims – operating and
accounts receivable – other) are exposed to the customer cred-
it risks. In order to hedge foreign exchange risks on operating
receivables from global business activities, the Companies use
exchange contracts.
As for short-term securities, the credit risk of negotiable
deposits is significantly minimized as these investments are lim-
ited to financial institutions with high credit ratings.
Operating payables (accounts payable – trade and electronical-
ly recorded monetary obligations – operating) are to be settled
within 6 months, and partly include foreign exchange risks on
import of raw materials from overseas; however, these amounts
are within the range of operating receivables in the same cur-
rency.
The main purpose of debts is for funding capital investment
and research and development. The repayment period for these
debts is within 5 years at most.
Investment securities mainly consist of stocks, which are
exposed to price fluctuation risk.
Derivatives include forward contracts to hedge transactions
subject to foreign exchange fluctuation risk caused by operating
receivables and payables denominated in foreign currencies.
(3) Risk management for financial instruments
(3-1). Management of credit risk (risk of contractual default)
In order to manage operating receivables, our sales and ser-
vice departments (including those in consolidated subsidiaries)
monitor account balances and payment schedules periodically,
based on the Companies’ accounts receivable policies, which
also help to identify the financial risks in initial stages.
To minimize counterparty risks, derivative transactions are
conducted only with financial institutions with a high credit profile.
At the balance sheet date, the carrying value of financial
assets represents the maximum credit risk born by the Com-
panies.
(3-2). Market risk management
The Companies use exchange contracts in order to avoid foreign
exchange fluctuation risk on operating receivables and payables
denominated in foreign currencies.
Based on internal rules and policies about derivative trans-
actions, the Companies hedge foreign exchange fluctuation risk
in a certain range.
Risk management of investment securities is conducted
by inspecting market value and financial conditions of issuers,
periodically.
(4) Supplementary information on the estimated fair value of finan-
cial instruments
The fair value of financial instruments is based on their quoted
market value, if available. Fair value is reasonably estimated if the
market value is not available. Since various assumptions and fac-
tors are reflected in estimating the fair value, different assump-
tions and factors could result in different fair value. In addition,
the notional amounts of derivatives in Note 8, Derivative Financial
Instruments, are not necessarily indicative of the actual market
risk involved in derivative transactions.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
41
Information regarding fair value of financial instruments
Carrying value of financial instruments on the consolidated balance sheets and fair value as of March 31, 2017 and 2016 are shown in the
following table. The following table does not include financial instruments for which it is extremely difficult to determine the fair value (see
Remark 2 below).
As of March 31, 2017
Millions of yen Thousands of U.S. dollars
Carrying value Fair value Difference Carrying value Fair value Difference
(1) Cash on hand and at banks ¥ 24,491 ¥ 24,491 ¥ - $ 218,284 $ 218,284 $ -
(2) Notes and accounts receiv-able – trade and electronically recorded monetary claims – operating 23,891 23,891 - 212,938 212,938 -
(3) Short-term securities 2,000 2,000 - 17,825 17,825 -
(4) Accounts receivable – other 1,276 1,276 - 11,377 11,377 -
(5) Investment securitiesOther securities 6,711 6,711 - 59,817 59,817 -
Total assets 58,371 58,371 - 520,243 520,243 -
(1) Accounts payable – trade and electronically recorded mone-tary obligations – operating 8,811 8,811 - 78,530 78,530 -
(2) Accounts payable – other 854 854 - 7,611 7,611 -
(3) Short-term loans payable 2,970 2,970 (0) 26,475 26,475 (0)
(4) Long-term loans payable 1,500 1,505 5 13,368 13,421 52
Total liabilities 14,135 14,141 5 125,986 126,039 52
Derivative transactions which are not subject to hedge account-ing* (167) (167) - (1,495) (1,495) -
Derivative transactions which are subject to hedge accounting* ¥ 76 ¥ 76 ¥ - $ 683 $ 683 $ -
*The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
42
As of March 31, 2016
Millions of yen
Carrying value Fair value Difference
(1) Cash on hand and at banks ¥ 22,529 ¥ 22,529 ¥ -
(2) Notes and accounts receivable – trade and electroni-cally recorded monetary claims – operating 20,503 20,503 -
(3) Short-term securities 7,200 7,200 -
(4) Accounts receivable – other 1,348 1,348 -
(5) Investment securitiesOther securities 5,689 5,689 -
Total assets 57,271 57,271 -
(1) Accounts payable – trade and electronically recorded monetary obligations – operating 8,711 8,711 -
(2) Accounts payable – other 1,070 1,070 -
(3) Short-term loans payable 3,163 3,163 -
(4) Long-term loans payable 1,500 1,518 18
Total liabilities 14,445 14,464 18
Derivative transactions which are not subject to hedge accounting* 147 147 -
Derivative transactions which are subject to hedge accounting* ¥ 282 ¥ 282 ¥ -
*The value of assets and liabilities arising from derivatives is shown at net value and with the amount in parentheses representing net liability position.
Remark 1: Computing method of fair value for financial instruments and information
regarding securities and derivative transactionsAssets(1) Cash on hand and at banksAs these are settled in the short term, carrying value approximates fair value. Therefore, carrying value is used as fair value.(2) Notes and accounts receivable – trade and electronically recorded monetary claims – operatingAs these are settled in the short term, fair value and carrying value of these items are almost the same. Therefore, carrying value is used as fair value.(3) Short-term securitiesAs these are settled in the short term, fair value and carrying value of these items are almost the same. Therefore, carrying value is used as fair value.(4) Accounts receivable – otherAs these are settled in the short term, fair value and carrying value of these items are almost the same. Therefore, carrying value is used as fair value.(5) Investment securitiesThe fair value of stocks in based on quoted market prices. The information on securities is shown in Note 7.
Liabilities(1) Accounts payable – trade and electronically recorded monetary obligations - operatingAs these are settled in the short term, fair value and carrying value of these items are almost the same. Therefore, carrying value is used as fair value.(2) Accounts payable – otherAs these are settled in the short term, fair value and carrying value of these items are almost the same. Therefore, carrying value is used as fair value.(3) Short-term loans payableFair value is computed by discounting the nominal amount using an interest rate which is assumed to be applied for a new borrowing with the same conditions.(4) Long-term loans payableFair value is computed by discounting the nominal amount using an interest rate which is assumed to be applied for a new borrowing with the same conditions.
Derivative TransactionsComputing method of fair value and information of derivative transactions are shown in Note 8.
Remark 2: Financial instruments for which it is extremely difficult to determine the fair value
As of March 31, 2017
Carrying value
Types of securities Millions of yenThousands of U.S. dollars
Unlisted stocks ¥113 $1,007
Total ¥113 $1,007
As of March 31, 2016
Carrying value
Types of securities Millions of yen
Unlisted stocks ¥113
Total ¥113
Items above do not have market value and their fair value is extremely difficult to deter-mine. Therefore, the amounts above are not included in assets (5) Investment securities.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
43
Remark 3: The redemption schedule for monetary claims or securities with maturities subsequent was as follows.
As of March 31, 2017
Millions of yen
Within 1 year
Over1 year within
5 years
Over 5 years within
10 years
Over 10 years
Cash at banks ¥24,466 ¥ - ¥ - ¥ -
Notes and accounts receiv-able – trade and electron-ically recorded monetary claims – operating 23,891 - - -
Short-term securities(Negotiable deposits) 2,000 - - -
Accounts receivable – other 1,276 - - -
Total ¥ 51,634 ¥ - ¥ - ¥ -
As of March 31, 2017
Thousands of U.S. dollars
Within 1 year
Over1 year within
5 years
Over 5 years within
10 years
Over 10 years
Cash at banks $218,062 $ - $ - $ -
Notes and accounts receiv-able – trade and electron-ically recorded monetary claims – operating 212,938 - - -
Short-term securities(Negotiable deposits) 17,825 - - -
Accounts receivable – other 11,377 - - -
Total $460,204 $ - $ - $ -
As of March 31, 2016
Millions of yen
Within 1 year
Over1 year within
5 years
Over 5 years within
10 years
Over 10 years
Cash at banks ¥22,499 ¥ - ¥ - ¥ -
Notes and accounts receiv-able – trade and electron-ically recorded monetary claims – operating 20,503 - - -
Short-term securities (Negotiable deposits) 7,200 - - -
Accounts receivable – other 1,348 - - -
Total ¥51,551 ¥ - ¥ - ¥ -
Remark 4: The redemption schedule for loans payable was as follows.
As of March 31, 2017
Millions of yen
Within 1 year
Over1 year within
2 years
Over 2 years within
3 years
Over 3 years within
4 years
Over 4 years within
5 years
Short-term loans payable ¥2,970 ¥ - ¥ - ¥ - ¥ -
Long-term loans payable - 500 500 500 -
Total ¥2,970 ¥500 ¥500 ¥500 ¥ -
As of March 31, 2017
Thousands of U.S. dollars
Within 1 year
Over 1 year within
2 years
Over 2 years within
3 years
Over 3 years within
4 years
Over 4 years within
5 years
Short-term loans payable $26,475 $ - $ - $ - $ -
Long-term loans payable - 4,456 4,456 4,456 -
Total $26,475 $4,456 $4,456 $4,456 $ -
As of March 31, 2016
Millions of yen
Within 1 year
Over1 year within
2 years
Over 2 years within
3 years
Over 3 years within
4 years
Over 4 years within
5 years
Short-term loans payable ¥3,163 ¥ - ¥ - ¥ - ¥ -
Long-term loans payable - - 500 500 500
Total ¥3,163 ¥ - ¥500 ¥500 ¥500
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
44
7 SHORT-TERM SECURITIES AND INVESTMENT SECURITIES
(1) The acquisition cost and carrying value of other securities with market values were as follows:
As of March 31, 2017
Millions of yen Thousands of U.S. dollars
Types of securities Acquisition cost Carrying value Unrealized gains Acquisition cost Carrying value Unrealized gains
Carrying value
exceeds acquisition
cost:
Stocks ¥ 1,343 ¥ 6,711 ¥ 5,367 $ 11,978 $ 59,817 $ 47,839
Sub-total 1,343 6,711 5,367 11,978 59,817 47,839
Carrying value does
not exceed acquisi-
tion cost:
Stocks
Others
-
2,000
-
2,000
-
-
-
17,825
-
17,825
-
-
Sub-total 2,000 2,000 - 17,825 17,825 -
Total ¥ 3,343 ¥ 8,711 ¥ 5,367 $ 29,803 $ 77,643 $ 47,839
As of March 31, 2016
Millions of yen
Types of securities Acquisition cost Carrying value Unrealized gains (losses)
Carrying value exceeds
acquisition cost:
Stocks ¥ 1,073 ¥ 5,432 ¥ 4,358
Sub-total 1,073 5,432 4,358
Carrying value does not
exceed acquisition cost:
Stocks
Others
270
7,200
256
7,200
(13)
-
Sub-total 7,470 7,456 (13)
Total ¥ 8,543 ¥ 12,889 ¥ 4,345
(2) Sales of securities classified as other securities and aggregate gain or loss were as follows:
For the year ended March 31, 2017
There were no sales of securities classified as other securities for the year.
For the year ended March 31, 2016
There were no sales of securities classified as other securities for the year.
8 DERIVATIVE FINANCIAL INSTRUMENTS
The Companies enter into forward exchange contracts and cur-
rency options to hedge market risks relating to possible future
changes in foreign exchange rates for foreign-currency denominat-
ed trading accounts. These contracts reduce the overall exposure
to exchange fluctuations by effectively fixing the transaction costs.
Counterparty risk relating to derivative instruments is relatively low
as all counterparties are limited to creditworthy financial institutions.
The Companies have internal rules and policies related to derivative
transactions.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
45
Fair value information on the derivatives outstanding as of March 31, 2017 and 2016 is summarized in the following tables:
As of March 31, 2017
(1) Derivative transactions (hedge accounting not applied)
Currency-related transactions (non-market transactions)
Millions of yen Thousands of U.S. dollars
Contract value Contract value
Contract value total
Over 1 year Fair value Unrealized
gain (loss)Contract value total
Over1 year Fair value Unrealized
gain (loss)
Forward exchange transactions:
Sell -
USD ¥ 1,308 ¥ - ¥ (61) ¥ (61) $ 11,662 $ - $ (546) $ (546)
EUR 3,026 - 21 21 26,974 - 194 194
CNY 69 - (3) (3) 622 - (26) (26)
Buy -
USD 739 - (8) (8) 6,586 - (77) (77)
JPY 2,152 - (116) (116) 19,180 - (1,038) (1,038)
Total ¥ 7,295 ¥ - ¥ (167) ¥ (167) $ 65,026 $ - $ (1,495) $ (1,495)
Remark: Calculation of fair value is based on information provided by financial institutions.
(2) Derivative transactions (hedge accounting applied)
Currency-related transactions (Deferred hedge accounting method)
Millions of yen Thousands of U.S. dollars
Contract value Contract value
Main hedged item
Contract value total
Over 1 year Fair value Main hedged
itemContract value total
Over 1 year Fair value
Forward exchange
transactions:
Expected foreign
currency transactions
Expected foreign
currency transactions
Sell -
USD ¥ 4,222 ¥ 798 ¥ (109) $ 37,637 $ 7,115 $ (976)
EUR 3,305 347 166 29,462 3,100 1,484
JPY 132 1 1 1,176 13 12
CNY 2,022 475 17 18,022 4,238 160
Buy -
USD 58 - (0) 517 - (1)
EUR 230 - (3) 2,054 - (28)
JPY 373 - 3 3,328 - 27
GBP 124 - 1 1,109 - 13
CAD 72 - (0) 646 - (8)
Total ¥ 10,541 ¥ 1,623 ¥ 76 $ 93,955 $ 14,468 $ 683
Remark: Calculation of fair value is based on information provided by financial institutions.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
46
As of March 31, 2016
(1) Derivative transactions (hedge accounting not applied)
Currency-related transactions (non-market transactions)
Millions of yen
Contract value
Contract value total Over 1 year Fair value Unrealized gain
(loss)
Forward exchange transactions:
Sell -
USD ¥ 190 ¥ 71 ¥ 12 ¥ 12
EUR 2,551 500 105 105
CNY 547 - 30 30
Buy -
USD 21 - (1) (1)
Total ¥ 3,310 ¥ 571 ¥ 147 ¥ 147
Remark: Calculation of fair value is based on information provided by financial institutions.
(2) Derivative transactions (hedge accounting applied)
Currency-related transactions (Deferred hedge accounting method)
Millions of yen
Contract value
Main hedged item Contract value total Over 1 year Fair value
Forward exchange transactions:
Expected foreign currency
transactions
Sell -
USD ¥ 3,166 ¥ 433 ¥ 128
EUR 2,619 2,040 79
JPY 263 21 (12)
CNY 1,545 875 85
Buy -
USD 331 - (7)
EUR 260 26 3
JPY 622 2 5
GBP 143 - (0)
Total ¥ 8,953 ¥ 3,400 ¥ 282
Remark: Calculation of fair value is based on information provided by financial institutions.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
47
9 LOANS PAYABLE
Short-term loans payable as of March 31, 2017 consisted of the following:
Millions of yenWeighted average
interest rateRepayment dates Thousands of U.S. dollars
Short-term loans payable ¥2,970 0.85%September
28 and 29, 2017$26,475
Short-term loans payable as of March 31, 2016 consisted of the following:
Millions of yenWeighted average
interest rateRepayment dates
Short-term loans payable ¥3,163 0.84%September
28 and 30, 2016
Long-term loans payable as of March 31, 2017 consisted of the following:
Millions of yenWeighted average
interest rateRepayment dates Thousands of U.S. dollars
Long-term loans payable ¥1,500 0.74%March 29, 2019, March 19 and
December 15, 2020$13,368
Long-term loans payable as of March 31, 2016 consisted of the following:
Millions of yenWeighted average
interest rateRepayment dates
Long-term loans payable ¥1,500 0.74%March 29, 2019, March 19 and
December 15, 2020
Repayment schedules for long-term loans payable as of March 31, 2017 are as follows:
As of March 31Millions of yen Thousands of U.S. dollars
2019 ¥500 $4,456
2020 500 4,456
2021 500 4,456
2022 - -
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
48
10 RETIREMENT BENEFITS FOR EMPLOYEES
AIDA and its domestic consolidated subsidiaries have a cash balance plan as a defined benefit pension plan and a defined contribution
pension plan.
Certain overseas consolidated subsidiaries have a defined benefit pension plan and a defined contribution pension plan.
(1) Defined benefit pension plan
The changes in the retirement benefit obligation during the years ended March 31, 2017 and 2016 are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Balance at the beginning of the year ¥ 3,637 ¥ 3,755 $ 32,416
(1) Service cost 165 158 1,476
(2) Interest cost 23 33 209
(3) Actuarial gain and loss (13) 5 (117)
(4) Retirement benefits paid (113) (313) (1,013)
(5) Others 13 (3) 117
Balance at the end of the year ¥ 3,712 ¥ 3,637 $ 33,088
The changes in plan assets during the years ended March 31, 2017 and 2016 are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Plan assets at the beginning of the year ¥ 3,972 ¥ 4,171 $ 35,405
(1) Expected return on plan assets 79 83 708
(2) Actuarial gain and loss 72 (192) 644
(3) Contributions by the Company 216 213 1,930
(4) Retirement benefits paid (106) (303) (949)
Plan assets at the end of the year ¥ 4,234 ¥ 3,972 $ 37,738
The following table sets forth the funded status of the plans and the amounts recognized in the consolidated balance sheets as of March 31,
2017 and 2016 for the Companies’ defined benefit plans:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
(1) Funded retirement benefit obligation ¥ 3,603 ¥ 3,537 $ 32,120
(2) Plan assets at fair value (4,234) (3,972) (37,738)
(630) (435) (5,618)
(3) Unfunded retirement benefit obligation 108 99 968
(4) Net amount of liabilities and assets for retirement benefits in the consolidated balance sheet (521) (335) (4,650)
(5) Net defined benefit liabilities 108 99 968
(6) Net defined benefit assets (630) (435) (5,618)
(7) Net amount of liabilities and assets for retirement benefits in the consolidated balance sheet ¥ (521) ¥ (335) $ (4,650)
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
49
The components of retirement benefit expenses for the years ended March 31, 2017 and 2016 are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
(1) Service cost ¥ 165 ¥ 163 $ 1,476
(2) Interest cost 23 33 209
(3) Expected return on plan assets (79) (83) (708)
(4) Amortization of actuarial gain and loss (1) (65) (17)
Retirement benefit expenses ¥ 107 ¥ 48 $ 960
The component of retirement benefit plan adjustments included in other comprehensive income (before tax effect) for the years ended March
31, 2017 and 2016 is as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Actuarial gain and loss ¥ 83 ¥ (260) $ 744
Total ¥ 83 ¥ (260) $ 744
The component of retirement benefit plan adjustments included in accumulated other comprehensive income (before tax effect) as of March
31, 2017 and 2016 is as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Unrecognized actuarial loss ¥ (566) ¥ (483) $ (5,051)
Total ¥ (566) ¥ (483) $ (5,051)
The fair value of plan assets by major category, as a percentage of total plan assets, as of March 31, 2017 and 2016 is as follows:
2017 2016
(1) Bonds 26.6% 27.9%
(2) Stocks 30.9% 31.0%
(3) Cash on hand and at banks 3.7% 1.7%
(4) General accounts 26.9% 27.3%
(5) Others 11.9% 12.1%
Total 100.0% 100.0%
The expected return on assets has been estimated based on the anticipated allocation to each asset class the expected long-term returns
on assets held in each category.
The actuarial assumptions used in the calculation of liabilities for retirement benefits as of March 31, 2017 and 2016 are as follows:
2017 2016
(1) Discount rate Mainly 0.7% Mainly 0.7%
(2) Expected rate of return on plan assets Mainly 2.0% Mainly 2.0%
(3) Expected rate of salary increase Mainly 3.2% Mainly 3.2%
(2) Defined contribution pension plan
The contributions to the defined contribution plan of the Companies for the years ended March 31, 2017 and 2016 were ¥176 million ($1,577
thousand) and ¥176 million, respectively.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
50
11 NET ASSETS
Information regarding changes in net assets during the years ended March 31, 2017 and 2016 was as follows:
(1) Shares issued and outstanding / Treasury stock
During the year ended March 31, 2017
Types of shares Number of shares at April 1, 2016 Increase Decrease Number of shares at
March 31, 2017
Shares issued:
Common stock 73,647,321 - - 73,647,321
Treasury stock:
Common stock (Remarks 1, 2 and 3) 11,973,276 1,020 19,200 11,955,096
Remarks: 1. Increase due to purchase of shares of less than standard unit 1,0202. Details of the decrease are as follows:
Decrease due to the grant of shares from ESOP trust 4,200 Decrease due to exercising share subscription rights 15,000
3. The number of shares of treasury stock held by the Trust Account E as of April 1, 2016 and March 31, 2017 includes 3,388,200 shares and 3,384,000 shares, respectively.
During the year ended March 31, 2016
Types of shares Number of shares at April 1, 2015 Increase Decrease Number of shares at
March 31, 2016
Shares issued:
Common stock 73,647,321 - - 73,647,321
Treasury stock:
Common stock (Remarks 1, 2 and 3) 12,024,268 1,408 52,400 11,973,276
Remarks: 1. Increase due to purchase of shares of less than standard unit 1,4082. Details of the decrease are as follows:
Decrease due to the grant of shares from ESOP trust 7,400 Decrease due to exercising share subscription rights 45,000
3. The number of shares of treasury stock held by the Trust Account E as of April 1, 2015 and March 31, 2016 includes 3,395,600 shares and 3,388,200 shares, respectively.
(2) Share subscription rights
During the year ended March 31, 2017
Millions of yenThousands of U.S.
dollars
Company DescriptionType of shares issued
Number of shares at April 1, 2016
Increase Decrease
Number of shares at March 31,
2017
Balance at March 31, 2017
Balance at March 31, 2017
Parent
company
Share sub-
scription
rights
as stock
options - - - - - ¥151 $1,349
Total - - - - - ¥151 $1,349
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
51
During the year ended March 31, 2016
Millions of yen
Company DescriptionType of shares issued
Number ofshares at April 1, 2015
Increase Decrease
Number of shares at March 31,
2016
Balance at March 31, 2016
Parent
company
Share sub-
scription
rights
as stock
options - - - - - ¥145
Total - - - - - ¥145
12 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
The significant components of selling, general and administrative expenses for the years ended March 31, 2017 and 2016:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Salaries and wages ¥2,237 ¥2,461 $19,942
Bonuses 371 453 3,311
Provision for accrued bonuses for employees 424 449 3,780
Retirement benefit expenses 65 43 583
Welfare expenses 550 610 4,906
Commission expenses 294 403 2,625
Advertising and promotion expenses 113 154 1,014
Traveling expenses 542 583 4,838
Communication expenses 96 97 858
Rental expenses 264 257 2,359
Insurance expenses 252 260 2,253
Depreciation expenses 531 537 4,734
Taxation and other public dues 406 331 3,625
Compensation fee 533 467 4,752
13 RESEARCH AND DEVELOPMENT EXPENSES
Research and development expenses included in “Cost of sales” and “Selling, general and administrative expenses” for the years ended
March 31, 2017 and 2016 are summarized as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Selling, general and administrative expenses ¥ 956 ¥ 1,040 $ 8,529
Cost of sales 240 196 2,139
Total ¥ 1,197 ¥ 1,237 $ 10,668
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
52
14 INCOME TAXES
The applicable statutory tax rates in Japan were approximately 30.8% and 33.0% as of March 31, 2017 and 2016, respectively.
(1) Reconciliations of the differences between the effective income tax rates and statutory income tax rates for the years ended March 31,
2017 and 2016 are as follows:
2017 2016
Statutory income tax rates 30.8% 33.0%
Non-deductible expenses (entertainment expenses and others) for tax purposes 2.3 2.0
Dividend income (0.1) (0.1)
Dividends from overseas subsidiaries 0.3 0.2
Inhabitant taxes per capita 0.2 0.2
Difference of tax rates applied to overseas subsidiaries (1.3) (0.7)
Tax credit (4.6) (4.3)
Changes in valuation allowance (1.9) (1.9)
Effect of tax rate reduction 0.0 0.1
Others 0.4 2.0
Effective income tax rates 26.2% 30.6%
(2) The major components of deferred tax assets and liabilities as of March 31, 2017 and 2016 are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Deferred tax assets:
Loss on write-down of inventories ¥ 589 ¥ 590 $ 5,254
Accrued warranty costs 206 335 1,836
Accrued bonuses for employees 237 261 2,118
Depreciation expense 866 863 7,723
Unrealized loss on golf club membership 22 23 200
Long-term accounts payable - other 76 76 682
Tax losses carried forward 870 1,060 7,760
Others 623 439 5,556
Subtotal deferred tax assets 3,493 3,652 31,132
Less: Valuation allowance (2,178) (2,309) (19,417)
Total deferred tax assets 1,314 1,342 11,715
Deferred tax liabilities:
Undistributed subsidiaries’ earnings (374) (364) (3,333)
Reserve for reduction entry of replaced property (461) (467) (4,116)
Net defined benefit assets (197) (158) (1,760)
Unrealized gains on other securities (1,606) (1,301) (14,317)
Others (112) (106) (1,005)
Total deferred tax liabilities (2,752) (2,399) (24,532)
Net deferred tax assets (liabilities) ¥ (1,438) ¥ (1,056) $ (12,817)
(3) Revision of the amount of deferred tax assets and deferred tax liabilities due to change in corporation tax rate:
The “Act for Partial Revision of the Consumption Tax” and the “Act for Partial Revision of the Local Tax Act etc.” were enacted by the Japanese
Diet on November 18, 2016. As a result, the effective statutory corporate tax rate to calculate deferred tax assets and deferred tax liabilities
was changed. The effect of these changes on the consolidated financial statements was immaterial.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
53
15 LEASES
Description of finance leases is omitted due to its insignificance as of March 31, 2017 and 2016.
The following is a summary of future minimum payments under operating leases, as of March 31, 2017 and 2016:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Operating leases:
Due within 1 year ¥ 59 ¥ 71 $ 532
Thereafter 24 40 220
Total ¥ 84 ¥ 112 $ 752
16 RELATED PARTY TRANSACTIONS
There were no material transactions between AIDA and its related companies and individuals for the years ended March 31, 2017 and 2016.
17 NET INCOME PER SHARE
Shares held by the Trust & Custody Services Bank, Ltd. (Trust Account E) are treated as treasury stock on the consolidated financial state-
ments. As a result, those shares have been excluded from the number of shares to calculate “Average number of shares outstanding during
the years” and “Number of shares used for computing net assets per share” shown below.
Calculation of net assets per share and net income per share as of and for the years ended March 31, 2017 and 2016 are as follows:
Yen U.S. dollars
2017 2016 2017
Net assets per share*1 ¥1,145.74 ¥1,112.51 $10.21
Net income - Basic*2 80.82 93.78 0.72
- Diluted*2 80.65 93.54 0.71
*1: Data used in the calculation of “Net assets per share” are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Total net assets on consolidated balance sheets ¥70,834 ¥68,758 $631,326
Total net assets attributable to shares of common stock 70,683 68,613 629,977
Main differences: Stock options 151 145 1,349
Number of shares outstanding (thousands of shares) 73,647 73,647 -
Number of treasury stock (thousands of shares) 11,955 11,973 -
Number of shares used for computing net assets per share(thousands of shares) 61,692 61,674 -
*2: Data used in the calculation of “Net income - Basic” and “Diluted” are as follows:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Net income ¥ 4,985 ¥ 5,782 $44,434
Net income attributable to shares of common stock 4,985 5,782 44,434
Average number of shares outstanding during the years (thousands of shares) 61,686 61,660 -
Potential increase in common stock for the diluted income calculation (thousands of shares) 129 159 -
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
54
18 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
The following table presents reclassification adjustments and tax effects allocated to each component of other comprehensive income for
the years ended March 31, 2017 and 2016:
Millions of yen Thousands of U.S. dollars
2017 2016 2017
Net unrealized gains (losses) on securities:
Amount arising during the year ¥ 1,025 ¥ (110) $ 9,136
Reclassification adjustments for gains and losses included in net income - - -
Amount before tax effect 1,025 (110) 9,136
Tax effect (307) 98 (2,739)
Net unrealized gains (losses) on securities 717 (12) 6,397
Deferred hedge gains (losses):
Amount arising during the year (157) 105 (1,406)
Reclassification adjustments for gains and losses included in net income (182) 438 (1,627)
Amount before tax effect (340) 544 (3,033)
Tax effect 104 (172) 930
Deferred hedge gains (losses) (235) 371 (2,102)
Foreign currency translation adjustments:
Amount arising during the year (1,512) (2,543) (13,484)
Retirement benefit plans adjustments:
Amount arising during the year 87 (194) 778
Reclassification adjustments for gains and losses included in net income (3) (66) (33)
Amount before tax effect 83 (260) 744
Tax effect (26) 97 (237)
Retirement benefit plans adjustments 56 (163) 507
Total other comprehensive income (loss) ¥ (974) ¥ (2,348) $ (8,682)
19 SEGMENT INFORMATION
(1) Overview of reportable segments
The reportable segments of the Companies are components for
which discrete financial information is available and whose oper-
ating results are regularly reviewed by management to make deci-
sions about resource allocation and to assess performance.
The Companies operate within a single business related to the
manufacture and sale of press machines and their ancillary facilities,
and auxiliary business such as services.
AIDA plays a key role for the domestic business.
As for the overseas business, each local company includ-
ing Asia (China, Hong Kong, Singapore and Malaysia), Americas
(U.S.A.) and Europe (Italy) plays an important role.
Each foreign subsidiary is a single business entity, planning
comprehensive business strategies for products and conducting
business activities in each area. Accordingly, the Companies con-
sist of geographic segments which have the fundamental function
of manufacturing, sales and service.
Reportable segments are categorized into “Japan,” “Asia,”
“Americas” and “Europe.”
(2) Basis for calculating sales, profit or loss, assets, and other items
by reportable segments
Accounting policies of the segments are substantially the same as
those described in “Summary of Significant Accounting Policies.”
Operating income is used as reportable segment income.
Inter-segment sales and transfer prices are based on fair value.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
55
(3) Information on sales, profit or loss, assets, and other items by reportable segments
As of and for the year ended March 31, 2017
Millions of yen
Japan Asia Americas Europe Adjustments*1 Consolidated*2
Sales to third parties ¥ 24,249 ¥ 12,966 ¥ 18,466 ¥ 11,865 ¥ - ¥ 67,547
Inter-segment sales 16,927 2,293 286 472 (19,979) -
Total sales 41,176 15,259 18,752 12,337 (19,979) 67,547
Segment profit or loss 3,521 1,519 1,496 (65) 144 6,617
Segment assets 72,499 21,444 10,401 15,698 (18,360) 101,683
Depreciation 1,070 458 179 256 (2) 1,961
Increase in property, plant, equipment and intangible assets ¥ 612 ¥ 840 ¥ 202 ¥ 457 ¥ (19) ¥ 2,093
As of and for the year ended March 31, 2017
Thousands of U.S. dollars
Japan Asia Americas Europe Adjustments*1 Consolidated*2
Sales to third parties $ 216,126 $ 115,565 $ 164,582 $ 105,750 $ - $ 602,025
Inter-segment sales 150,867 20,437 2,555 4,206 (178,067) -
Total sales 366,993 136,003 167,138 109,957 (178,067) 602,025
Segment profit or loss 31,385 13,543 13,341 (580) 1,286 58,975
Segment assets 646,161 191,130 92,702 139,915 (163,639) 906,270
Depreciation 9,538 4,083 1,600 2,285 (23) 17,484
Increase in property, plant, equipment and intangible assets $ 5,459 $ 7,493 $ 1,802 $ 4,077 $ (172) $ 18,659
As of and for the year ended March 31, 2016
Millions of yen
Japan Asia Americas Europe Adjustments*1 Consolidated*2
Sales to third parties ¥ 26,216 ¥ 17,096 ¥ 18,065 ¥ 14,151 ¥ - ¥ 75,529
Inter-segment sales 17,825 3,892 943 702 (23,363) -
Total sales 44,041 20,989 19,008 14,853 (23,363) 75,529
Segment profit or loss 4,967 2,321 1,327 (490) (88) 8,037
Segment assets 70,839 24,154 10,611 14,230 (19,226) 100,609
Depreciation 1,052 501 191 252 (2) 1,995
Increase in property, plant, equipment and intangible assets ¥ 2,583 ¥ 453 ¥ 1,371 ¥ 245 ¥ - ¥ 4,654
*1 Adjustments of sales represent elimination of inter-segment transactions.Adjustments of segment profit or loss represent elimination of inter-segment transactions.Adjustments of segment assets represent elimination between inter-segment receivables and payables.Adjustments of depreciation and increase in property, plant, equipment and intangible assets represent elimination of inter-segment transactions.
*2 Segment profit or loss is adjusted to operating income of consolidated statements of income.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
56
(Related information)
1. Products and service
For the year ended March 31, 2017
Millions of yen
Press machines Service Others Total
Sales to third parties ¥52,711 ¥14,674 ¥160 ¥67,547
Thousands of U.S. dollars
Press machines Service Others Total
Sales to third parties $469,803 $130,791 $1,429 $602,025
For the year ended March 31, 2016
Millions of yen
Press machines Service Others Total
Sales to third parties ¥61,234 ¥14,072 ¥222 ¥75,529
2. Geographical information
(1) Sales
For the year ended March 31, 2017
Millions of yen Thousands of U.S. dollars
Japan Asia Americas Europe Others Total Japan Asia Americas Europe Others Total
¥24,339 ¥13,350 ¥18,796 ¥10,839 ¥220 ¥67,547 $216,933 $118,992 $167,524 $96,608 $1,966 $602,025
For the year ended March 31, 2016
Millions of yen
Japan Asia Americas Europe Others Total
¥25,373 ¥18,041 ¥19,633 ¥12,035 ¥446 ¥75,529
Remark: Sales are presented based on customer location, and they are classified by country and areas.
(2) Property, plant and equipment
As of March 31, 2017
Millions of yen Thousands of U.S. dollars
Japan Asia Americas Europe Total Japan Asia Americas Europe Total
¥11,131 ¥4,591 ¥2,152 ¥2,939 ¥20,815 $99,212 $40,924 $19,183 $26,200 $185,520
As of March 31, 2016
Millions of yen
Japan Asia Americas Europe Total
¥11,537 ¥3,772 ¥2,124 ¥3,222 ¥20,656
(Reportable segment information for impairment loss of fixed assets)
There is no impairment loss of fixed assets for the year ended March 31, 2017. Information is omitted due to its insignificance for the year
ended March 31, 2016.
(Reportable segment information for amortization and balance of goodwill)
There is no amortization or ending balance of goodwill recorded as of and for the years ended March 31, 2017 and 2016.
(Reportable segment information for gain of negative goodwill)
There is no gain of negative goodwill recorded for the years ended March 31, 2017 and 2016.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
57
20 STOCK OPTIONS
The directors’ remuneration amounts recorded in “Selling, general and administrative expenses” for the years ended March 31, 2017 and 2016
were ¥16 million (U.S.$149 thousand) and ¥19 million, respectively.
The number of common shares to be granted for stock options is as follows:
Fiscal year GranteesNumber of
common shares granted (shares)
Grant dateExercise price per
share (yen)Exercise periods
2007 Directors (4) 22,000 September 26, 2007 1 From September 27, 2007 to September 26, 20372008 Directors (6) 36,000 September 25, 2008 1 From September 26, 2008 to September 25, 20382009 Directors (6) 85,000 September 25, 2009 1 From September 26, 2009 to September 25, 20392010 Directors (6) 79,000 September 24, 2010 1 From September 25, 2010 to September 24, 20402011 Directors (7) 57,000 September 29, 2011 1 From September 30, 2011 to September 29, 20412012 Directors (6) 62,000 November 29, 2012 1 From November 30, 2012 to November 29, 20422013 Directors (6) 39,000 September 26, 2013 1 From September 27, 2013 to September 26, 20432014 Directors (6) 28,000 September 29, 2014 1 From September 30, 2014 to September 29, 20442015 Directors (6) 22,000 September 28, 2015 1 From September 29, 2015 to September 28, 20452016 Directors (5) 25,000 September 29, 2016 1 From September 30, 2016 to September 29, 2046
A summary of stock option activity is as follows:
Granted fiscal year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Exercise price per share (yen) 1 1 1 1 1 1 1 1 1 1Average stock price when exercised (yen) - - - - 851 851 851 851 851 -Fair value per share when granted (yen) - - - - 348.40 546.89 833.12 1,011.25 865.58 671.07Share subscription rights which are not yet vestedOutstanding as of April 1, 2016 (shares) - - - - - - - - - -Granted (shares) - - - - - - - - - 25,000Forfeited (shares) - - - - - - - - - -Vested (shares) - - - - - - - - - 25,000Outstanding as of March 31, 2017 (shares) - - - - - - - - - -Share subscription rights which have already been vestedOutstanding as of April 1, 2016 (shares) 15,000 21,000 47,000 41,000 35,000 42,000 32,000 23,000 22,000 -Vested (shares) - - - - - - - - - 25,000Exercised (shares) - - - - 2,000 5,000 3,000 3,000 2,000 -Forfeited (shares) - - - - - - - - - -Outstanding as of March 31, 2017 (shares) 15,000 21,000 47,000 41,000 33,000 37,000 29,000 20,000 20,000 25,000
The method for estimating the fair value of stock options granted for the year ended March 31, 2017 is as follows:
(a) Valuation method used: Black-Scholes model
(b) Principal assumptions
Volatility*1 ............................................ 37.41%
Projected remaining period*2 .............. 5 years
Projected dividend per share*3 ............ ¥30.00 (U.S.$0.26)
Risk-free interest rate............................ (0.239)%
*1 Computed based on share prices during a five-year period from September 30, 2011 to September 29, 2016.
*2 Estimated based on the past experience during the directors’ term of office.
*3 Determined based on the average of the dividend amounts for the years ended March 31, 2016 and 2015.
Annual Report 2017AIDA ENGINEERING, LTD.
Notes to Consolidated Financial Statements
58
21 SUBSEQUENT EVENTS
(Introduction of Board Benefit Trust)
AIDA resolved at the Board of Directors’ meeting held on May 12, 2017 to introduce a new share-based compensation plan, a “Board Benefit
Trust (BBT)” (the “Plan”) and the Plan was approved at the 82nd ordinary general meeting of shareholders held on June 19, 2017 (the “General
Shareholders’ Meeting”).
(1) Background and purpose
AIDA’s Board of Directors resolved to introduce the Plan, subject to the approval of shareholders at the General Shareholders’ Meeting
regarding executive compensation, for the purpose of raising awareness of contributing to the improvement of medium- to long-term
business results and increasing corporate value by further clarifying the link between the compensation of directors (excluding outside
directors; “Directors”) and AIDA’s share value, and by Directors sharing with shareholders not only the benefits of share price rises, but
also the risks of share price declines. AIDA’s Board of Directors submitted a proposal for the Plan to the General Shareholders’ Meeting.
Separate from the amount of compensation for Directors of AIDA that was approved at the 66th Ordinary General Meeting of Share-
holders held on June 28, 2001, and at the 72nd Ordinary General Meeting of Shareholders held on June 28, 2007, the shareholders
authorized the amount of compensation and benefits paid to Directors in stock acquisition rights as stock options to be a maximum of ¥35
million per each year after the date of ordinary general shareholder’s meeting for each fiscal year, and also approved the details of the said
stock acquisition rights. As the Plan was approved at the General Shareholders’ Meeting, AIDA discontinued authorized compensation for
Directors concerning the share acquisition rights.
(2) Outline of the Plan
The Plan is a share-based compensation plan under which AIDA’s shares are acquired through a trust (the trust established in accordance
with the Plan, the “Trust”) by using the funds contributed by AIDA. Directors will receive AIDA’s shares as well as the amount of money
equivalent to the market value of AIDA’s shares (as at the date of the retirement of Directors together with AIDA’s shares, the “AIDA Shares”)
through the Trust in accordance with the officer stock benefit rules formulated by AIDA. In principle, Directors will receive benefits, such as
AIDA Shares, on their retirement.
(3) Overview of the Trust
1. Name: Board Benefit Trust (BBT)
2. Entrustor: AIDA
3. Trustee: Mizuho Trust & Banking Co., Ltd. (re-entrusted by: Asset Management Trust & Custody Services Bank, Ltd.)
4. Beneficiaries: Retired Directors who meet the beneficiary eligibility requirements provided in the officer stock benefit rules
5. Trust administrator: A third party with no conflict of interests with AIDA is to be selected
6. Types of trust: Money trust other than cash trusts (third-party benefit trust)
7. Date of conclusion of this trust agreement: September, 2017 (planned)
8. Date on which the funds are entrusted: September, 2017 (planned)
9. Period of the Trust: From September, 2017 (planned) until the Trust is terminated (No specific date has been set for the termination of the
Trust; the Trust will continue as long as the Plan continues.)
(Appropriation of retained earnings)
On June 19, 2017, at the General Meeting of Shareholders, the following appropriation of retained earnings was approved:
Millions of yen Thousands of U.S. dollars
Cash dividends (¥40.00 (U.S.$0.35) per share) ¥2,603 $23,200
The amount includes dividends of ¥135 million (U.S.$1,206 thousand) on shares (3,384,000 shares as of March 31, 2017) held by the Trust
Account E.
59 AIDA ENGINEERING, LTD. Annual Report 2017 60
Share Price (¥)TOPIX (Points)
Share Price (upper left) TOPIX (lower left) Trading Volume (right)
Trading Volume(Thousands of shares)
High (¥)
Low (¥)
At Year-End (¥)
0
300
600
900
1,200
1,500
10,000
20,000
400
800
1,200
1,600
2,000
08/3
946
477
626
09/3
689
255
278
10/3
430
223
390
11/3
474
263
374
12/3
496
312
476
13/3
802
404
756
14/3
1,266
651
982
15/3
1,413
867
1,380
16/3
1,500
783
978
017/3
1,151
696
988
Percentage of TotalIssued Shares (%)
Number of Shares Held(thousands)
The Dai-ichi Life Insurance Company, Ltd.
Trust & Custody Services Bank, Ltd. (Trust Account E)*2
Nippon Life Insurance Company
Meiji Yasuda Life Insurance Company
Mizuho Bank, Ltd.
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Kimikazu Aida
AIDA ENGINEERING Trading-Partner Shareholding Association
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)
Name
Individuals and Other
Foreign Investors8.1%
1.4%
34.4%
22.0%
34.1%
5.43
4.59
3.44
3.42
2.96
2.71
2.49
1.96
1.65
1.64
4,000
3,384
2,533
2,516
2,179
1,997
1,832
1,444
1,216
1,206
*1 Although the Company holds 8,571,096 shares of treasury stock, it is excluded from the major shareholders listed above.*2 Shares shown as held by Trust & Custody Services Bank, Ltd. (Trust Account E) are being held in a re-entrustment related to a J-ESOP.
Stock Information
As of March 31, 2017
Financial Institutions
Securities Firms
Other Corporations
6118
Tokyo Stock Exchange, 1st Section
188,149,000
73,647,321
11,955,096*100 shares
10,042
Mizuho Trust & Banking Co., Ltd.
Securities Code
Stock Listing
Number of Shares Authorized
Number of Shares Issued
Number of Shares of Treasury Stock
Number of Shares per Trading Unit
Number of Shareholders
Shareholder Registry Administrator
*Number of shares of treasury stock includes the 3,384,000 shares of treasury stock held by Trust & Custody Services Bank, Ltd. as part of J-ESOP (Japanese employee stock ownership plan).
Independent Auditor’s Report
Breakdown of Issued Shares by Type of Shareholder
Major Shareholders (Top 10)*1
Monthly Share Price Range and Trading Volume
59 AIDA ENGINEERING, LTD. Annual Report 2017 60
Share Price (¥)TOPIX (Points)
Share Price (upper left) TOPIX (lower left) Trading Volume (right)
Trading Volume(Thousands of shares)
High (¥)
Low (¥)
At Year-End (¥)
0
300
600
900
1,200
1,500
10,000
20,000
400
800
1,200
1,600
2,000
08/3
946
477
626
09/3
689
255
278
10/3
430
223
390
11/3
474
263
374
12/3
496
312
476
13/3
802
404
756
14/3
1,266
651
982
15/3
1,413
867
1,380
16/3
1,500
783
978
017/3
1,151
696
988
Percentage of TotalIssued Shares (%)
Number of Shares Held(thousands)
The Dai-ichi Life Insurance Company, Ltd.
Trust & Custody Services Bank, Ltd. (Trust Account E)*2
Nippon Life Insurance Company
Meiji Yasuda Life Insurance Company
Mizuho Bank, Ltd.
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
Kimikazu Aida
AIDA ENGINEERING Trading-Partner Shareholding Association
BNY GCM CLIENT ACCOUNT JPRD AC ISG (FE-AC)
Name
Individuals and Other
Foreign Investors8.1%
1.4%
34.4%
22.0%
34.1%
5.43
4.59
3.44
3.42
2.96
2.71
2.49
1.96
1.65
1.64
4,000
3,384
2,533
2,516
2,179
1,997
1,832
1,444
1,216
1,206
*1 Although the Company holds 8,571,096 shares of treasury stock, it is excluded from the major shareholders listed above.*2 Shares shown as held by Trust & Custody Services Bank, Ltd. (Trust Account E) are being held in a re-entrustment related to a J-ESOP.
Stock Information
As of March 31, 2017
Financial Institutions
Securities Firms
Other Corporations
6118
Tokyo Stock Exchange, 1st Section
188,149,000
73,647,321
11,955,096*100 shares
10,042
Mizuho Trust & Banking Co., Ltd.
Securities Code
Stock Listing
Number of Shares Authorized
Number of Shares Issued
Number of Shares of Treasury Stock
Number of Shares per Trading Unit
Number of Shareholders
Shareholder Registry Administrator
*Number of shares of treasury stock includes the 3,384,000 shares of treasury stock held by Trust & Custody Services Bank, Ltd. as part of J-ESOP (Japanese employee stock ownership plan).
Independent Auditor’s Report
Breakdown of Issued Shares by Type of Shareholder
Major Shareholders (Top 10)*1
Monthly Share Price Range and Trading Volume
Company Name
Founded
Established
Capital
Fiscal Year-End
Number of Employees
Head Office
AIDA ENGINEERING, LTD.
March 1917
March 25, 1937
¥7,831 million
March 31
730 (Consolidated: 1,950)
2-10 Ohyama-cho, Midori Ward, Sagamihara City, Kanagawa Prefecture, 252-5181, Japan
TEL. +81-42-772-5231
FAX. +81-42-772-5263
WEBSITEOn its corporate website, AIDA offers a wealth of information, including timely disclosure of financial information for its shareholders and other investors, information on products and after-service support for customers, and information for those unfamiliar with the Company’s operations.http://www.aida.co.jp/en/
Corporate Data
1917 AIDA Ironworks is founded in Honjo, Tokyo, Yokei Aida.1923 The factory is totally destroyed by the Great Kanto
Earthquake, but rebuilt immediately.1933 Introduced the first Japanese knuckle-joint press.1937 Incorporated as a limited company with capital of
¥200,000.1945 The factory is totally destroyed in an air raid, then rebuilt
and operations are restarted two months later.1956 Introduced the first 200-ton high-speed automatic press.1959 New factory constructed in Sagamihara City in
Kanagawa Prefecture (current headquarters).1960 Introduced the first Japanese transfer press.1962 Listed on the Tokyo Stock Exchange, 2nd Section.1964 Headquarters and Kameido Factory are moved and
integrated into the Sagamihara facility.1967 Completed the development of a 2,500-ton transfer press
(among the world’s largest capacity presses at the time).1968 Introduced “Autohand,” the first Japanese industrial robot.1970 Company name is changed to AIDA ENGINEERING, LTD.1971 Promoted to the 1st Section of the Tokyo Stock Exchange.1972 Established a subsidiary in the United States.1974 Tsukui Factory is constructed (the current Tsukui Plant
Division in Sagamihara City).1985 Nominated as a marginable stock on the Tokyo Stock
Exchange. Established a subsidiary in Canada.1989 Established a subsidiary in Singapore.1992 ACCESS, LTD. is established in Ishikawa Prefecture. AIDA BUSINESS CORP. is established in Sagamihara City.1993 Established a subsidiary in Hong Kong.1995 Manufacturing bases are established in the United States
and Malaysia. A new facility is constructed in Hakusan City in Ishikawa
Prefecture.1997 Established a subsidiary in Thailand.
1999 Received ISO 9001 certification.2001 Received ISO 14001 certification.2002 Established subsidiaries in China (Shanghai) and France. Introduced the world’s first direct-drive servo press (now
called the Direct Servo Former).2003 A manufacturing base is established in China (Shanghai). Completed the development of the Precision Forming
Press UL Series.2004 Established a subsidiary in Germany (Kamen). Absorbed an Italian company, and established a
manufacturing base.2005 Established subsidiaries in Brazil and Indonesia.2007 A new plant is constructed on land adjacent to the
headquarters. Established a subsidiary in India.2008 Announced a newly development of a 2,300-ton large
servo press (among the world’s largest capacity presses).2009 Established a subsidiary in Mexico. Completed the developed of AIDA Ultimate Precision
Forming Press UL-D Series.2010 Launched commercial marketing of large-capacity servo
motors for servo presses developed and manufactured by AIDA.
Transferred Chinese production base to Nantong City and expanded base.
2011 Established subsidiaries in Vietnam and Morocco.2012 Established a subsidiary in Russia.2013 Segregation of production functions
from AIDA ENGINEERING (M) SDN. BHD. to AIDA MANUFACTURING (ASIA) SDN. BHD.
2015 Established a subsidiary in the Philippines. Completed the development of a 2,700-ton progressive
servo press (among the world’s largest capacity presses).2016 Established a Technology Center in Germany
(Weingarten).
History
As of March 31, 2017
Corporate Data/History
As of August 31, 2017
Operating Bases
AMERICAS AIDA AMERICA CORP. (U.S.A.)
7660 Center Point 70 Blvd., Dayton, Ohio 45424-6380, U. S. A.TEL (1)937-237-2382FAX (1)937-237-1995
AIDA CANADA, INC. (CANADA)131 Saunders Road, Unit 9 Barrie, Ontario L4N 9A7, CanadaTEL (1)705-734-9692FAX (1)705-734-9695
AIDA ENGINEERING DE MEXICO,S. DE R. L. DE C.V. (MEXICO)Av. Hercules # 401-B, Nave Industrial #7, Poligono Empresarial Santa Rosa, Santa Rosa Jaureguí, Queretaro. C.P. 76220, México TEL (52)442-291-1320, (52)442-291-1321
AIDA do BRASIL Comércio de Máquinas Ltda.(BRAZIL)Rua Mafalda Barnabé Soliani, 374Distrito Industrial Vitória Martini, Indaiatuba (SP), 13347-610, BrazilTEL (55)19-3500-4600
EUROPE AIDA S.r.l. (ITALY)
Via Brescia, 26 25020 Pavone Mella (BS), ItalyTEL (39)030-9590111FAX (39)030-9959377
AIDA Germany GmbH (GERMANY)Südfeld, 9d D-59174 Kamen, GermanyTEL (49)2307-43864-20FAX (49)2307-43864-40
AIDA EUROPE GmbH (GERMANY)Josef-Eggler Strasse.8, 88250 Weingarten, Germany
AIDA S.r.l. UK BRANCH (U.K.)City Road, Derby DE1 3RP, EnglandTEL (44)1332-648200FAX (44)1332-648221
AIDA S.r.l. CZECH BRANCH (CZECH)Plzenská 155/113, 150 00 Praha 5, Czech RepublicTEL (420)255-739-320FAX (420)255-739-315
OOO AIDA (RUSSIA)Frunze Street, 14B office 230, 445037 Togliatti, RussiaTEL&FAX (7)8482 270376
AFRICA AIDA Maroc Sarl (MOROCCO)
Lot 81 Ilot C5, Zone Franche d' Exportation, 90 100, Tangier, MoroccoTEL (212)539-395-325FAX (212)539-392-262
CHINA AIDA HONG KONG, LTD. (Hong Kong)
Unit 901-902, 9/F.,29 Austin Road. Tsimshatsui, Kowloon, Hong KongTEL (852)2736-0118FAX (852)2375-6581
AIDA PRESS MACHINERY SYSTEMS CO., LTD.(Nantong)No.409, Jimei Road, Chenqiao Street, Gangzha District, Nantong, ChinaTEL (86)513-5100-6588FAX (86)513-5100-6018
AIDA ENGINEERING CHINA CO., LTD.(Shanghai)Room 101, No.1 building, 88 Yangxin road, Pudong new Area, Shanghai, 200126, ChinaTEL (86)21-6510-2233FAX (86)21-5046-3828
AIDA ENGINEERING CHINA CO., LTD.TIANJIN OFFICE (Tianjin)#2-101, 20-1, Building W20, West District, TAEA Business Park, No. 76, Huanhe North Street, Tianjin Airport Economic Area, Tianjin, 300300, ChinaTEL (86)22-5828-5633FAX (86)22-5828-5632
AIDA ENGINEERING CHINA CO., LTD. GUANGZHOU BRANCH (Guangzhou)B2602, North Island Innovation Park, No.51 Xingang East Road, Haizhu District, Guangzhou, 510330, ChinaTEL (86)20-8412-0256FAX (86)20-8412-0291
AIDA ENGINEERING CHINA CO., LTD. GUANGZHOU BRANCH CHONGQING OFFICE (Chongqing)No.5-1, Zongda International Automotive City,No.822 Konggang Avenue, Yubei District,Chongqing, 401120, ChinaTEL & FAX (86)23-6748-0053
AIDA ENGINEERING CHINA CO., LTD.WUHAN OFFICE (Wuhan)No. 36, Lihuyuan, Tianehu Villa, Dongfeng Road No.111, Zhuankou Economic Development Zone, Wuhan, 430058, ChinaTEL & FAX (86)27-8426-7599
ASIA AIDA GREATER ASIA PTE. LTD. (SINGAPORE)
No. 1, Bukit Batok Crescent, WCEGA Plaza #02-60, Singapore 658064TEL (65)6507 3555FAX (65)6507 3553
AIDA ENGINEERING (M) SDN. BHD.(MALAYSIA)Plo 524, Jalan Keluli, 81700 Pasir Gudang, Johor, MalaysiaTEL (60)7-251-6688FAX (60)7-252-0688
AIDA ENGINEERING (M) SDN. BHD.Shah Alam Branch (MALAYSIA)No. 31, Jalan Pendidik U1/31, Hicom Glenmarie Industrial Park, 40150 Shah Alam, Selangor, MalaysiaTEL (60)3-5569-2872FAX (60)3-5569-2879
AIDA MANUFACTURING (ASIA) SDN. BHD. (MALAYSIA)Plo 524, Jalan Keluli, 81700 Pasir Gudang, Johor, MalaysiaTEL (60)7-251-6688FAX (60)7-252-0688
AIDA (THAILAND) CO., LTD. (THAILAND)19/19 Moo 6 Wat-Sriwarinoi Rd, T.Srisajorrakeayai, A.Bangsaothong, Samutprakarn 10570, ThailandTEL (66)2136-3900FAX (66)2136-3907 [Services Dept.],
(66)2136-3909 [Sales Dept.]
PT. AIDA INDONESIA (INDONESIA)Jl. Science Boulevard Blok A2 / 9 KawasanIndustri Jababeka V Kel.Sertajaya CikarangTimur -Bekasi 17530, IndonesiaTEL (62)21-2962-6688FAX (62)21-2962-6689
AIDA INDIA PVT. LTD. (INDIA)No.48, Ground Floor, DLF Star Tower, Silokhera, Sector 30, Gurgaon 122001, Haryana, IndiaTEL (91)124-4716888FAX (91)124-4716889
AIDA VIETNAM CO., LTD. (VIETNAM)Room 108, Industrial Park Center, Thang Long Industrial Park, Kim Chung Commune, Dong Anh District, Hanoi, VietnamTEL (84)4-3885-3388FAX (84)4-3885-3399
AIDA GREATER ASIA PHILIPPINES , INC.(PHILIPPINES)Unit 101B, Alpap II Bldg. Trade St. Cor. Investment Drive, Madrigal Business Park, Ayala Alabang, Muntinlupa City, PhilippinesTEL (63)2-771-1561FAX (63)2-771-1268
AIDA ENGINEERING, LTD. Oyama, Takasaki, Kanagawa, Hamamatsu, Chubu, Nagoya, Osaka, Chugoku/Shikoku, Fukuoka
ACCESS, LTD. AIDA BUSINESS CORP.
Overseas
Domestic
Production facilities Global sales and service network Technology center
61 AIDA ENGINEERING, LTD. Annual Report 2017 62
Company Name
Founded
Established
Capital
Fiscal Year-End
Number of Employees
Head Office
AIDA ENGINEERING, LTD.
March 1917
March 25, 1937
¥7,831 million
March 31
730 (Consolidated: 1,950)
2-10 Ohyama-cho, Midori Ward, Sagamihara City, Kanagawa Prefecture, 252-5181, Japan
TEL. +81-42-772-5231
FAX. +81-42-772-5263
WEBSITEOn its corporate website, AIDA offers a wealth of information, including timely disclosure of financial information for its shareholders and other investors, information on products and after-service support for customers, and information for those unfamiliar with the Company’s operations.http://www.aida.co.jp/en/
Corporate Data
1917 AIDA Ironworks is founded in Honjo, Tokyo, Yokei Aida.1923 The factory is totally destroyed by the Great Kanto
Earthquake, but rebuilt immediately.1933 Introduced the first Japanese knuckle-joint press.1937 Incorporated as a limited company with capital of
¥200,000.1945 The factory is totally destroyed in an air raid, then rebuilt
and operations are restarted two months later.1956 Introduced the first 200-ton high-speed automatic press.1959 New factory constructed in Sagamihara City in
Kanagawa Prefecture (current headquarters).1960 Introduced the first Japanese transfer press.1962 Listed on the Tokyo Stock Exchange, 2nd Section.1964 Headquarters and Kameido Factory are moved and
integrated into the Sagamihara facility.1967 Completed the development of a 2,500-ton transfer press
(among the world’s largest capacity presses at the time).1968 Introduced “Autohand,” the first Japanese industrial robot.1970 Company name is changed to AIDA ENGINEERING, LTD.1971 Promoted to the 1st Section of the Tokyo Stock Exchange.1972 Established a subsidiary in the United States.1974 Tsukui Factory is constructed (the current Tsukui Plant
Division in Sagamihara City).1985 Nominated as a marginable stock on the Tokyo Stock
Exchange. Established a subsidiary in Canada.1989 Established a subsidiary in Singapore.1992 ACCESS, LTD. is established in Ishikawa Prefecture. AIDA BUSINESS CORP. is established in Sagamihara City.1993 Established a subsidiary in Hong Kong.1995 Manufacturing bases are established in the United States
and Malaysia. A new facility is constructed in Hakusan City in Ishikawa
Prefecture.1997 Established a subsidiary in Thailand.
1999 Received ISO 9001 certification.2001 Received ISO 14001 certification.2002 Established subsidiaries in China (Shanghai) and France. Introduced the world’s first direct-drive servo press (now
called the Direct Servo Former).2003 A manufacturing base is established in China (Shanghai). Completed the development of the Precision Forming
Press UL Series.2004 Established a subsidiary in Germany (Kamen). Absorbed an Italian company, and established a
manufacturing base.2005 Established subsidiaries in Brazil and Indonesia.2007 A new plant is constructed on land adjacent to the
headquarters. Established a subsidiary in India.2008 Announced a newly development of a 2,300-ton large
servo press (among the world’s largest capacity presses).2009 Established a subsidiary in Mexico. Completed the developed of AIDA Ultimate Precision
Forming Press UL-D Series.2010 Launched commercial marketing of large-capacity servo
motors for servo presses developed and manufactured by AIDA.
Transferred Chinese production base to Nantong City and expanded base.
2011 Established subsidiaries in Vietnam and Morocco.2012 Established a subsidiary in Russia.2013 Segregation of production functions
from AIDA ENGINEERING (M) SDN. BHD. to AIDA MANUFACTURING (ASIA) SDN. BHD.
2015 Established a subsidiary in the Philippines. Completed the development of a 2,700-ton progressive
servo press (among the world’s largest capacity presses).2016 Established a Technology Center in Germany
(Weingarten).
History
As of March 31, 2017
Corporate Data/History
As of August 31, 2017
Operating Bases
AMERICAS AIDA AMERICA CORP. (U.S.A.)
7660 Center Point 70 Blvd., Dayton, Ohio 45424-6380, U. S. A.TEL (1)937-237-2382FAX (1)937-237-1995
AIDA CANADA, INC. (CANADA)131 Saunders Road, Unit 9 Barrie, Ontario L4N 9A7, CanadaTEL (1)705-734-9692FAX (1)705-734-9695
AIDA ENGINEERING DE MEXICO,S. DE R. L. DE C.V. (MEXICO)Av. Hercules # 401-B, Nave Industrial #7, Poligono Empresarial Santa Rosa, Santa Rosa Jaureguí, Queretaro. C.P. 76220, México TEL (52)442-291-1320, (52)442-291-1321
AIDA do BRASIL Comércio de Máquinas Ltda.(BRAZIL)Rua Mafalda Barnabé Soliani, 374Distrito Industrial Vitória Martini, Indaiatuba (SP), 13347-610, BrazilTEL (55)19-3500-4600
EUROPE AIDA S.r.l. (ITALY)
Via Brescia, 26 25020 Pavone Mella (BS), ItalyTEL (39)030-9590111FAX (39)030-9959377
AIDA Germany GmbH (GERMANY)Südfeld, 9d D-59174 Kamen, GermanyTEL (49)2307-43864-20FAX (49)2307-43864-40
AIDA EUROPE GmbH (GERMANY)Josef-Eggler Strasse.8, 88250 Weingarten, Germany
AIDA S.r.l. UK BRANCH (U.K.)City Road, Derby DE1 3RP, EnglandTEL (44)1332-648200FAX (44)1332-648221
AIDA S.r.l. CZECH BRANCH (CZECH)Plzenská 155/113, 150 00 Praha 5, Czech RepublicTEL (420)255-739-320FAX (420)255-739-315
OOO AIDA (RUSSIA)Frunze Street, 14B office 230, 445037 Togliatti, RussiaTEL&FAX (7)8482 270376
AFRICA AIDA Maroc Sarl (MOROCCO)
Lot 81 Ilot C5, Zone Franche d' Exportation, 90 100, Tangier, MoroccoTEL (212)539-395-325FAX (212)539-392-262
CHINA AIDA HONG KONG, LTD. (Hong Kong)
Unit 901-902, 9/F.,29 Austin Road. Tsimshatsui, Kowloon, Hong KongTEL (852)2736-0118FAX (852)2375-6581
AIDA PRESS MACHINERY SYSTEMS CO., LTD.(Nantong)No.409, Jimei Road, Chenqiao Street, Gangzha District, Nantong, ChinaTEL (86)513-5100-6588FAX (86)513-5100-6018
AIDA ENGINEERING CHINA CO., LTD.(Shanghai)Room 101, No.1 building, 88 Yangxin road, Pudong new Area, Shanghai, 200126, ChinaTEL (86)21-6510-2233FAX (86)21-5046-3828
AIDA ENGINEERING CHINA CO., LTD.TIANJIN OFFICE (Tianjin)#2-101, 20-1, Building W20, West District, TAEA Business Park, No. 76, Huanhe North Street, Tianjin Airport Economic Area, Tianjin, 300300, ChinaTEL (86)22-5828-5633FAX (86)22-5828-5632
AIDA ENGINEERING CHINA CO., LTD. GUANGZHOU BRANCH (Guangzhou)B2602, North Island Innovation Park, No.51 Xingang East Road, Haizhu District, Guangzhou, 510330, ChinaTEL (86)20-8412-0256FAX (86)20-8412-0291
AIDA ENGINEERING CHINA CO., LTD. GUANGZHOU BRANCH CHONGQING OFFICE (Chongqing)No.5-1, Zongda International Automotive City,No.822 Konggang Avenue, Yubei District,Chongqing, 401120, ChinaTEL & FAX (86)23-6748-0053
AIDA ENGINEERING CHINA CO., LTD.WUHAN OFFICE (Wuhan)No. 36, Lihuyuan, Tianehu Villa, Dongfeng Road No.111, Zhuankou Economic Development Zone, Wuhan, 430058, ChinaTEL & FAX (86)27-8426-7599
ASIA AIDA GREATER ASIA PTE. LTD. (SINGAPORE)
No. 1, Bukit Batok Crescent, WCEGA Plaza #02-60, Singapore 658064TEL (65)6507 3555FAX (65)6507 3553
AIDA ENGINEERING (M) SDN. BHD.(MALAYSIA)Plo 524, Jalan Keluli, 81700 Pasir Gudang, Johor, MalaysiaTEL (60)7-251-6688FAX (60)7-252-0688
AIDA ENGINEERING (M) SDN. BHD.Shah Alam Branch (MALAYSIA)No. 31, Jalan Pendidik U1/31, Hicom Glenmarie Industrial Park, 40150 Shah Alam, Selangor, MalaysiaTEL (60)3-5569-2872FAX (60)3-5569-2879
AIDA MANUFACTURING (ASIA) SDN. BHD. (MALAYSIA)Plo 524, Jalan Keluli, 81700 Pasir Gudang, Johor, MalaysiaTEL (60)7-251-6688FAX (60)7-252-0688
AIDA (THAILAND) CO., LTD. (THAILAND)19/19 Moo 6 Wat-Sriwarinoi Rd, T.Srisajorrakeayai, A.Bangsaothong, Samutprakarn 10570, ThailandTEL (66)2136-3900FAX (66)2136-3907 [Services Dept.],
(66)2136-3909 [Sales Dept.]
PT. AIDA INDONESIA (INDONESIA)Jl. Science Boulevard Blok A2 / 9 KawasanIndustri Jababeka V Kel.Sertajaya CikarangTimur -Bekasi 17530, IndonesiaTEL (62)21-2962-6688FAX (62)21-2962-6689
AIDA INDIA PVT. LTD. (INDIA)No.48, Ground Floor, DLF Star Tower, Silokhera, Sector 30, Gurgaon 122001, Haryana, IndiaTEL (91)124-4716888FAX (91)124-4716889
AIDA VIETNAM CO., LTD. (VIETNAM)Room 108, Industrial Park Center, Thang Long Industrial Park, Kim Chung Commune, Dong Anh District, Hanoi, VietnamTEL (84)4-3885-3388FAX (84)4-3885-3399
AIDA GREATER ASIA PHILIPPINES , INC.(PHILIPPINES)Unit 101B, Alpap II Bldg. Trade St. Cor. Investment Drive, Madrigal Business Park, Ayala Alabang, Muntinlupa City, PhilippinesTEL (63)2-771-1561FAX (63)2-771-1268
AIDA ENGINEERING, LTD. Oyama, Takasaki, Kanagawa, Hamamatsu, Chubu, Nagoya, Osaka, Chugoku/Shikoku, Fukuoka
ACCESS, LTD. AIDA BUSINESS CORP.
Overseas
Domestic
Production facilities Global sales and service network Technology center
61 AIDA ENGINEERING, LTD. Annual Report 2017 62
Annual Report 2017Year ended March 31, 2017
Annual Report 2017
Printed in Japan
2-10 Ohyama-cho, Midori Ward, Sagamihara City, Kanagawa Prefecture 252-5181, Japan
TEL +81-42-772-5231 FAX +81-42-772-5263